OPEC production increased in April

The Organization of the Petroleum Exporting Countries (OPEC) increased its daily production by 1,789 million barrels during the month of April as a consequence of the expiration of the cut agreement that they had with other oil-producing nations.

Specifically, the total production of the 13 countries that make up OPEC reached 30.412 million barrels per day. The greatest increase took place by Saudi Arabia, which increased its pumping by 1,553 million barrels per day, to 11.55 million. In second place was the United Arab Emirates, which produced 3.839 million barrels, while behind was Kuwait, with a daily extraction of 3.132 million barrels.

The bulkiest declines occurred in Angola and Nigeria, while Venezuela was close to its all-time low, with production collapsing to 622,000 barrels per day.

Predictably, the May data will be diametrically opposite to that of April, given that OPEC once again agreed with its allies on a new cut of 9.7 million barrels during May and June. After that period and until the end of the year, the cut will be 7.7 million barrels, while between January 2021 and April 2022, the reduction in production will be 5.8 million barrels.

Given the continuous advance of the Covid-19 pandemic, OPEC has lowered its prospects for oil demand worldwide by 2020. While in April it forecast a decrease of 6.85 million barrels per day, to 92.82 million, now considers that it will contract by 9.07 million barrels per day, up to 90.59 million.

The biggest contraction will be recorded during the second quarter, when global demand will drop by almost 20 million barrels per day, to 81.3 million.

K. Tovar

Source: El Confidencial