OPEC Production Hits Multiyear Low: What You Need To Know

Total oil output from OPEC members fell in March by a combined 534,000 barrels per day (bpd) to just over 30 million barrels, CNBC reported Wednesday. 

What Happened

OPEC's production slash amounts to around 0.5 percent of total global oil demand, CNBC said. The reduction is consistent with OPEC's push to cooperate with Russia to keep 1.2 million bpd sidelined through June in reaction to the 2018 collapse in oil prices.

Saudi Arabia alone removed 324,000 bpd of oil as the country's total output dropped to less than 9.8 million bpd. The reduction is similarly in-line with the country's internal decision to pump less than 10 million bpd.

The last time monthly production hovered around the 30-million barrel mark was back in February 2015, when the entity combined for 29.97 million bpd, CNBC said.

Why It's Important

OPEC's reduction comes at a time when Venezuela's production plunged by 289,000 bpd to 732,000 bpd throughout March. The company's internal economic crisis continues as it faces a political standoff and potential U.S. sanctions against its state-operated oil company PDVSA, CNBC said.

What's Next

OPEC and its alliance members will discuss oil policy at a June meeting. Heading into the event, Saudi Arabia has already indicated it is considering a continuation of production cuts in the back half of 2019. Russia has not committed to a similar extension of its own, CNBC said. 

Related Links:

FreightWaves Oil Report: OPEC Cuts Are Getting Near The Target

OPEC Maintains 2019 Global Oil Demand Growth Forecast