OPEC Oil Production Stays Steady, Leaving New Cuts Unfinished

Grant Smith, Julian Lee and Bill Lehane, Bloomberg News

Oil transportation pipes and storage tanks stand in the Duna oil refinery, operated by MOL Hungarian Oil & Gas Plc, in Szazhalombatta, Hungary, on Monday, Feb. 13, 2019. Oil traded near a three-month high as output curbs by OPEC tightened global supply while trade talks between the U.S. and China lifted financial markets. Photographer: Akos Stiller/Bloomberg , Bloomberg

(Bloomberg) -- OPEC’s crude production stayed steady last month, leaving the group’s latest cutbacks incomplete.

The Organization of Petroleum Exporting Countries pumped 26.81 million barrels a day in April, about 50,000 a day less than the previous month, according to a Bloomberg survey. Minor increases by Libya and Iraq were offset by reductions in Iran and Nigeria.

As a result, supply curbs agreed by the group and its allies at the start of the year to avert a surplus are still unfinished. Iraq and the United Arab Emirates continue to pump several hundred thousand barrels a day above their agreed limits.

Nonetheless, output restraints by others in the alliance — such as Saudi Arabia, Kuwait and Algeria — have helped buoy oil prices against a fragile economic backdrop, bolstering revenue for its members. Brent futures traded near $85 a barrel in London on Wednesday.

The biggest change last month was in Libya, which increased by 60,000 barrels a day to 1.19 million a day while it restored output halted earlier this year by protests at its largest oil field. The North African nation is exempt from OPEC+ targets while its oil industry remains severely damaged by years of internal conflict.

Iraq’s output rose modestly to 4.22 million barrels a day, or about 220,000 a day above its OPEC+ target. Baghdad has promised to make additional cutbacks in compensation, along with fellow errant alliance member Kazakhstan, but has often flouted quotas as it seeks revenues to rebuild a shattered economy.

Iran and Nigeria each pared supplies by 50,000 barrels a day to 3.13 million and 1.42 million barrels a day respectively, according to the survey. Group leader Saudi Arabia remained stable at about 9 million barrels a day.

The 22-nation OPEC+ alliance — which spans other producers such as Russia — is due to meet on June 1 to decide whether to extend its current output curbs into the second half of the year.

Bloomberg’s survey is based on ship-tracking data, information from officials and estimates from consultants, including Kpler Ltd., Rapidan Energy Group and Rystad Energy A/S.

--With assistance from Lucia Kassai, Andrew Reierson, John Deane and Verity Ratcliffe.