OPEC’s oil production saw a slight decline in April, despite a planned increase in output as reported by a recent Reuters survey. The decrease in production, which fell by 30,000 barrels per day to 26.60 million barrels, was primarily driven by a reduction in Venezuelan oil supply due to renewed U.S. efforts to restrict exports.
Smaller output drops were also noted in Iraq and Libya, although these were partially offset by an uptick in Iranian production. The output reduction is noteworthy given that OPEC+, which includes OPEC and its allies like Russia, began unwinding recent output cuts in April.
The group has announced plans to accelerate production in May and June, citing favorable market conditions such as low inventories. However, the actual increase in production may be influenced by U.S. actions to limit oil supplies from countries like Iran and Venezuela.
In April, Venezuela experienced the most significant output drop among OPEC members as cargo cancellations by Chevron, a U.S. oil company, led to the return of shipping vessels. Iraq also reduced its output amid pressures to comply with OPEC+ production quotas.
In contrast, top producer Saudi Arabia and other Gulf countries like the UAE and Kuwait showed little change in production levels, despite higher OPEC+ quotas for the month. While the Reuters survey indicated that the UAE and Iraq were close to their quotas, other estimates, including those from the International Energy Agency, suggest they could be producing significantly more.
On a brighter note, Iran reported an increase in its oil exports for April, marking OPEC’s most substantial output growth despite the impact of U.S. sanctions. The Reuters survey aims to provide an accurate snapshot of oil supply in the market, relying on various data sources, including financial institutions and information from oil companies.