According to estimates for March, OPEC crude production slumped to the lowest level in four years for several reasons. Saudi Arabia forged ahead with production cuts. Besides, Venezuela had to scale back its oil output due to the US sanctions and power blackouts.
In March 2019, the 14 OPEC members contracted oil production by 280,000 barrels per day compared to February making the total output of 30.40 million barrels per day. Experts say, the cartel’s output has been the lowest since 2015. Referring to surveys of analysts and ship-tracking data, Saudi Arabia and its allies in the Persian Gulf have been slashing oil production to a greater extent than individual quotes set out in the OPEC+ pact. The cartel neglects Donald Trump’s pressure to maintain oil output. In March, the cartel’s compliance with the pact on oil production cuts is measured at 135% from 101% recorded in February.
At present, Brent crude futures are trading firmly above $68 a barrel. To sum it up, oil prices remain close to the highest levels of 2019 because global oil supplies are tightening amid solid cutbacks by OPEC and disrupted oil production in Venezuela and Iran targeted by the US sanctions.
