Survey: OPEC oil production declines in March, led by Venezuela and Iran

A Reuters survey showed that OPEC production declined in March, ahead of the implementation of the OPEC+ plan to gradually increase production. This decline was due to lower supplies from Nigeria, Iran, and Venezuela, amid the continued impact of US sanctions.

According to the survey results released on Monday, OPEC production in March reached approximately 26.63 million barrels per day, a decrease of 110,000 barrels per day compared to February’s total.

Nigeria, Iran, and Venezuela contributed the most to this decline, with each country’s production declining by about 50,000 barrels per day, according to survey estimates.

US sanctions on Iran and Venezuela continue to weigh on their production and export capacity. Iran’s production declined from February levels, which were the highest since September 2018, when its exports reached their highest level before sanctions were tightened under former US President Donald Trump. In Nigeria, the survey results attributed the decline to reduced supplies to the Dangote refinery, despite increased exports. According to the report, Nigeria continues to produce above the OPEC+ target, while Gabon was the least compliant with its production quota. The OPEC+ alliance, comprising OPEC members and partners led by Russia, is preparing to begin a phased production increase following the recent cuts. However, the actual increase still depends largely on developments in global markets, as well as the effectiveness of the US administration’s attempts to limit oil supplies from Iran and Venezuela.