The Organization of Petroleum Exporting Countries (OPEC) reduced March’s output by 153,000b/d to around 31.9mb/d, ForexLive reported, citing OPEC’s official statement.
OPEC’s 11 members with supply targets cut output to around 29.76mb/d compared to around 29.8mb/d target, suggesting a compliance of 104%, as informed on Seeking Alpha.
Saudi Arabia, the largest producer in the cartel, cut output to 9.9mb/d from February’s level of 10.01mb/d. Thus, the Saudi production had reached its lowest since the beginning of 2017. The output production is considered below the level that was supposed to be maintained by Saudi Arabia as part of a global deal to decrease crude supplies.
Additionally, the United Arab Emirates (UAE) made progress in reducing oil production by more than 139,000b/d in March which reassured its commitment to the OPEC cut deal.
Furthermore, OPEC raised its forecast for world oil demand in 2017 to 1.27mb/d from the prior 1.26mb/d. However, the estimate for OPEC demand in 2017 decreased by 130,000b/d to 32.22mb/d, due to higher supply from non-OPEC members. The cartel said that expectations for non-OPEC oil output growth were 400,000b/d for March and 580,000b/d for April.