OPEC’s oil output witnessed a decrease last month, primarily driven by reduced exports from Iraq and Nigeria, amidst continued voluntary supply cuts by certain members in alignment with the broader OPEC+ coalition. According to a Reuters survey based on shipping data and industry sources, the Organization of the Petroleum Exporting Countries produced 26.42 million barrels per day (bpd) in March, marking a decline of 50,000 bpd compared to February.
Several OPEC+ members implemented additional production cuts in January to counter economic challenges and rising supply from non-member countries. The agreed-upon supply adjustments were extended through June during the latest meeting, with a key ministerial panel set to convene this week for a market review without recommending policy modifications ahead of the next full OPEC+ meeting scheduled for June 1. Iraq and Nigeria recorded the most significant reductions in output in March, with Iraq committing to lower exports to offset surpassing its OPEC production target.
Despite a 50,000 bpd cut in March, further adjustments are required to fulfill the export reduction pledge made by Iraq. Nigerian production also declined, particularly as the Dangote refinery received more shipments. OPEC fell short of its targeted cuts by approximately 190,000 bpd in March, primarily due to overproduction by Iraq, Nigeria, and Gabon. Key Gulf producers such as Saudi Arabia, Kuwait, and the United Arab Emirates maintained output near their voluntary targets, while Iran’s production slightly decreased.
Iran continues to operate close to a five-year production peak achieved in November despite ongoing U.S. sanctions. Notably, no significant output increases were observed among OPEC members in March, with Libya registering a minor uptick as its production normalized following disruptions in February.