BAKU, Azerbaijan, April 16
By Leman Zeynalova - Trend:
According to secondary sources, total OPEC-13 preliminary crude oil production averaged 28.61 mb/d in March, higher by 821 tb/d m-o-m, Trend reports citing OPEC’s Monthly Oil Market Report (MOMR).
Crude oil output increased mainly in Saudi Arabia, UAE and Kuwait, while production decreased primarily in Venezuela, Libya and IR Iran.
OPEC NGLs and non-conventional liquids are estimated to have grown by 0.04 mb/d in 2019 to average 4.79 mb/d, unchanged from last month’s assessment, following growth of 0.12 mb/d in 2018.
OPEC NGL output in February remained unchanged at an average of 4.88 mb/d.
Preliminary production in March also indicates the same level as in February. The preliminary 2020 forecast indicates growth of 0.04 mb/d to average 4.83 mb/d, representing an upward revision by 0.01 mb/d, due to higher-thanexpected NGL output in 1Q20.
The share of OPEC crude oil in total global production increased by 0.6 pp to 28.7 percent in March compared with the previous month. Estimates are based on preliminary data from direct communication for non-OPEC supply, OPEC NGLs and non-conventional oil, while estimates for OPEC crude production are based on secondary sources.
OPEC+ has agreed to a 9.7mn b/d cut, effective May 1. The cut will be held in place until June 30, when it will be reduced to 7.7mn b/d. On January 1 2021, the volume will adjusted down once more, to 5.8mn b/d, and will be held in place until April 30 2022, subject to review at the December 2021 meeting. The OPEC+ cut is being backed by members of the G20, which have committed to support the market's rebalancing. However, this support will not take the form of a coordinated production cut, but will instead comprise a mix of involuntary output declines and strategic stockpiling. The exact volume that will be contributed by the G20 is unclear, but stands somewhere in the order of 5.0mn b/d.
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