OPEC oil output falls in February as Saudi cuts continue

Saudi Arabia’s crude oil production fell by 85,000 barrels per day (bpd) to average 10.09 million barrels per day (mbd) in February 2019, the Organization of Petroleum Exporting Countries (OPEC) said in its latest monthly oil market report on Thursday, citing secondary sources.

The direct communication figures showed the Kingdom had reduced its production by 106,000 bpd to 10.14 mbd last month.

Total OPEC-14 preliminary crude oil production averaged 30.55 mbd, a decline of 221,000 bpd over the previous month, the report said, stating the majority of the decline came from Venezuela, Saudi Arabia, and Iraq.

Last week, Saudi Energy Minister Khalid Al-Falih said it would be too early to change OPEC+ output policy at the group’s meeting in April and that China and the US would lead healthy global demand for oil this year.

The OPEC+ is scheduled to meet in Vienna on April 17-18, followed by another meeting on June 25-26.

Meanwhile, world oil demand is forecast to grow by 1.24 mbd, unchanged from last month’s projections, OPEC said.

Brent averaged 7 percent higher month-on-month (MoM) at $64.434 a barrel in February, while WTI climbed 6.7 percent MoM to average $54.98 per barrel.  

"Oil prices were supported by increasing confidence that the oil market will balance later this year, the better performance of equity markets and growing optimism regarding the possibility of a US-China deal on trade matters," it added.