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Crude oil Production Surges in April

According to the latest S&P Global Platts survey, Iran pumped its largest volume of Crude oil  in almost two years in April. While increasing compliance-challenged Russia also boosted its output yet again, bringing total production by OPEC and its allies to a three-month high.The survey also found that OPEC produced 25.28 million barrels per day , up 80,000 barrels per day from March; Russia and eight other non-OPEC partners in the group’s supply accord added 13.21 million b/d, an increase of 130,000 b/d. The rising output is a preview of the wave of OPEC+ Crude oil set to hit the market over the next few months.

In probability of rising global oil demand, the alliance plans to roll back its quotas by a 350,000 barrels per day  in May, another 350,000 barrels per day in June, and 441,000 barrels per day in July, for a total 1.14 million b/d rise. Saudi Arabia which has been reining in an extra 1 million barrels per day to support the market has said it will end its voluntary cut slowly over that span, releasing 250,000 barrels per day in May, 350,000 barrels per day in June and 400,000 barrels per day in July.

The country averaged production of 8.14 million b/d in April, the survey found, compared to its quota of 9.12 million b/d. According to Platts calculations The 10 OPEC members with quotas under the deal and the nine non-OPEC allies achieved a conformity level of 111% in April. But take away the extra Saudi cut, and compliance falls to 96%, which would be the lowest since July 2020.

Russia, the main non-OPEC partner, pumped 9.50 million b/d of crude, a rise of 160,000 b/d from March and well above its quota of 9.38 million b/d, with seaborne exports surging in the month.A brief price war broke out in a harsh spat over how to manage oil supply through the pandemic, which was later settled with the current deal.Iraq produced 3.97 million b/d, and Nigeria, at 1.60 million b/d, also provided to worsening compliance, hitting their highest levels since May 2020, driven by higher Crude oil exports.

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