OPEC inventory falls in March amid Saudi output cut

Saudi Arabia’s crude oil production fell by 324,000 barrels per day (bpd) to average 9.79 million barrels per day (mbd) in March, the Organization of Petroleum Exporting Countries (OPEC) said in its latest monthly oil market report on Wednesday, citing secondary sources.

The direct communication figures showed the Kingdom had lowered its production by 350,000 bpd to 9.78 mbd last month, it added.

Total OPEC-14 preliminary crude oil production averaged 30.02 mbd in March, falling 534,000 bpd over the last month. Majority of the decline were seen in Saudi Arabia, Venezuela, Iraq and Iran.

OPEC also revised global oil demand downward by 30,000 bpd from 1.24 mbd to around 1.21 mbd compared with February’s projection due to slower-than-expected economic activity. As a result, total world demand for 2019 is now expected to reach 99.91 mbd and exceed the 100 mbd threshold during the second half of the year.

Crude oil futures prices extended gains last month, with both Brent and WTI reaching their highest level since last October, amid uncertainties about the supply outlook from several regions.

Brent averaged a four percent month-on-month (MoM) increase to $67.03 a barrel, while WTI rose 5.8 percent MoM to $58.17 per barrel.

"Disappointing macroeconomic data coming from major economies, and concerns about slowing global economic outlook that could hit oil demand amid continuing trade negotiations between China and the US, weighed on oil prices," the report said.