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OPEC’s Oil Output Rises to One-Year High Before Planned Revival
(Bloomberg) -- OPEC’s crude production rose to the highest level in more than a year ahead of the group’s planned supply revival, driven by gains in Iraq, Venezuela and the United Arab Emirates.
Output increased by 240,000 barrels a day last month to a daily average of 27.35 million barrels, the most since December 2023, according to a Bloomberg survey. Iraqi supply recovered after a fire at its biggest oil field, while Venezuela bolstered exports ahead of tighter US restrictions and the UAE boosted shipments.
The increases mark a relapse for the Organization of Petroleum Exporting Countries, whose discipline had improved in recent months as the group and its allies persevered with output curbs aimed at shoring up crude prices.
Led by Saudi Arabia and Russia, the OPEC+ coalition is planning to start a series of modest monthly production increases in April, to gradually bring back supplies shuttered since 2022. But delegates say they’re once again considering delaying the restart, which has already been postponed three times as prices struggle.
Brent futures have retreated more than 10% since mid-January to trade near $73 a barrel in London, as faltering consumption in China and brimming output from the US, Guyana and Canada threaten to create a supply surplus.
With the latest supply gains, OPEC nations are once again collectively pumping several hundred thousand barrels per day above quotas set last year.
Iraq’s production rose by 100,000 barrels a day to 4.16 million per day, as it restored production halted during a fire at the Rumaila oil field in late January, according to the survey. Baghdad has long chafed against OPEC+ output restrictions as it seeks to rebuild an economy shattered by years of conflict.
The UAE raised output by 70,000 barrels a day to 3.3 million a day as its exports reached a three-month high on increased shipments to Japan and China, the survey showed. That’s almost 400,000 barrels a day above its agreed limit. Abu Dhabi has often been eager to make use of newly-installed production capacity.
Venezuela, which is exempt from OPEC+ quotas while its oil industry struggles, raised production by 80,000 barrels a day to 980,000 — the highest in six years. US President Donald Trump plans to revoke Chevron Corp.’s operating license in Venezuela, threatening a severe blow to its exports and revenue.
Bloomberg’s survey is based on ship-tracking data, information from officials and estimates from consultants, Rapidan Energy Group and Rystad Energy.
--With assistance from Anthony Di Paola, Prejula Prem, Verity Ratcliffe, Lucia Kassai and Salma El Wardany.