London: Opec’s oil output rose in April to close to the highest level in recent history, a survey found yesterday, as production increases led by Iran and Iraq more than offset a strike in Kuwait and other outages.
Top exporter Saudi Arabia, however, made no major change to output, the survey found, despite the kingdom hinting it could boost supply after Opec and non-member nations failed to agree to freeze output at a meeting on April 17.
Supply from the Opec rose to 32.64 million barrels per day (bpd) this month, from 32.47m bpd in March, according to the survey, based on shipping data and information from sources at oil companies, Opec and consultants.
That almost matches January’s 32.65m bpd, when Indonesia’s return as an Opec member boosted production and output from the other 12 members was the highest in Reuters survey records, starting in 1997.
Opec output has surged since it abandoned in 2014 its historic role of cutting supply to prop up prices, led by higher supply from Saudi Arabia and Iraq.
Iran saw the sharpest increase in production in April after Western sanctions were lifted in January. At 3.4m bpd, Iranian output is within sight of the 3.5m bpd it pumped at the end of 2011 before sanctions were tightened.
Iraq, which saw the fastest growth in production in Opec in 2015, also raised output. Southern exports have risen to what may be a new record in April – depending on whether tankers loading at the end of the month are treated as April or May. Shipments of Kurdish crude from the north also rose.
Opec’s third-largest supply increase in April came from the UAE, following the end of maintenance work on oilfields that produce Murban crude.
Of the countries that reduced output, the largest decline was in Kuwait due to a three-day workers’ strike which temporarily more than halved oil output and curbed refinery operations.
Saudi Arabia kept output steady compared with March, sources in the survey said, even though use in domestic power plants is rising. Saudi production was estimated at 10.15m bpd versus 10.18m in March.
“Exports are lower,” said a source who monitors Saudi output. “The month is not over yet so let’s wait for the final number, but that’s what I am seeing here and now.”
Opec meets on June 2 in Vienna and may discuss the freeze initiative again. However, Opec officials have been encouraged by the price recovery, which may take the urgency out of a renewed attempt to forge a deal.
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