Output falls to near five-year low

摘要

Opec production fell for a fourth consecutive month as Saudi Arabia implemented further cuts,making its total reduction since the December 2018 agreement came into effect equivalent to the group’s entire 800,000 b/d commitment.Opec output fell by 390,000 b/d to 30.14mn b/d in March-its lowest since June 2014-amid Saudi production discipline and involuntary losses in Iraq and Venezuela.Compliance among the group’s participating members that agreed to remove a combined 800,000 b/d from the global oil market over January-June rose to 159pc in March(see table).A 310,000 b/d month-on-month reduction pushed Saudi output to its lowest in over two years at 9.79mn b/d in March,840,000 b/d below its October baseline.Saudi Arabia’s deep cuts have offset overproduction by other states party to the deal.Saudi oil minister Khalid al-Falih says some countries have been”facing ramp-down situations within their industries”,but has warned that this overcompensation is unlikely to last indefinitely,stressing during the March meeting of the Opec and non-Opec Joint Ministerial Monitoring Committee that other participating members”have all assured me that they are on their way,in a very short order,to catch up on their commitments”.