Opec crude production tumbled to a four-year low in February as “involuntary” production cuts from its more troubled members took their toll. A 280,000 b/d fall took the group’s average output down to just 30.76mn b/d for February, its lowest level since February 2015. The group has now cut far deeper than the 800,000 b/d it pledged in December as its share of global production shrinks further (MEES, 7 December 2018).
The 11 Opec members which signed up to the cuts – Libya, Venezuela and Iran are exempt – agreed to cap production at 25.94mn b/d for the first six months of the year. Their combined output of 25.99mn b/d in February puts them within touching distance of this. But, given the substantial output fall from the exempt trio in the intervening months, the reality is that Opec has overshot its target by a considerable margin. (CONTINUED - 1017 WORDS)
