The 10 members of the Organization of the Petroleum Exporting Countries (OPEC) that have agreed to restrict production through June produced 31.85 million barrels of oil per day in April, according to a survey released Friday by S&P Global Platts. That matches OPEC’s March production. Including production from Indonesia, which has suspended its OPEC members, production topped the agreed quota level of 32.5 million barrels a day by 80,000 barrels.
Saudi Arabia produced 9.97 million barrels a day, below its quota level of 10.1 million barrels, and Iraq produced 4.36 million barrels a day, some 9,000 daily barrels above its agreed quota.
Iran, which has been allowed to increase production slightly, pumped 3.77 million barrels a day, slightly below its agreed quota level of 3.8 million barrels.
Herman Wang, Platts’ specialist on OPEC, said:
OPEC members can go into their May 25 meeting in Vienna feeling good about their compliance levels. Even countries, like Iraq and the UAE, which have come in for some criticism over their production levels, moved closer to compliance in April. But an extension to the production cut agreement is far from a done deal, with many details to be negotiated, including cut levels, exemptions and duration, amid an increasingly skeptical market. OPEC still has much to discuss.
The cartel is expected to extend the production for an additional six months, through December, at the May 25 meeting.
Based on average compliance for the first four months of the quota system, OPEC production from 11 members (including Iran) averages 117% of the agreed quota. Production is 5% above the agreed quota level if Iran is excluded from the calculation.