OPEC output drops as UAE, Libya production slows in March

OPEC’s crude oil production in March decreased by 153,000 barrels per day (bpd), compared to February, to average 31.93 million bpd as output dropped in Libya and the United Arab Emirates, according to the group’s latest monthly report released Wednesday.

Libya’s production plunged nearly 61,000 bpd in March, data from secondary sources revealed. The country has been facing supply cuts after two of its biggest oilfields were shut after pipelines were blocked by certain groups.

Meanwhile, the UAE saw its production drop by nearly 32,700 bpd, as the Gulf state looked to ensure greater compliance with output limits enforced in January to help rebalance the market.

Saudi Arabia’s output rose to 9.99 million bpd in March compared to 9.95 million bpd in the previous month, according to secondary sources.

According to Saudi Arabia’s direct communication, the kingdom’s production averaged 10 million barrels in February.

OPEC said it expects its production to average 6.21 million bpd in 2017, unchanged from last month’s forecast.

Supply from oil producers outside of the cartel is expected to grow by 580,000 barrels per day (bpd) in 2017 average 57.89 million bpd.

“This is due to higher expectations for US growth – revised up by 200,000 bpd – along with lower declines in Colombia and China following revisions of 23,000 bpd and 26,000 bpd, respectively,” the group said.

World oil demand for 2017 is anticipated to be around 1.27 million bpd, following an upward revision of 10 million bpd to average 96.32 million bpd, it added.

Write to Nadeshda Zareen at nadeshda.zareen@argaamplus.com