The Organization of Petroleum Exporting Countries (OPEC) recorded a significant drop in oil supply in April 2019, with production falling to 30.23 million barrels per day (bpd), marking a four-year low.
This decrease in output was attributed to further declines in production from Iran and Venezuela, both of which are under U.S. sanctions, as well as continued output restraint from top exporter Saudi Arabia. Despite these declines, OPEC’s overall supply reduction was partially offset by production gains from Nigeria and Libya, two countries exempt from OPEC’s voluntary output cuts. In Nigeria, Total’s Egina field contributed to the boost in output.
The April output was down by 90,000 bpd compared to March, and represents OPEC’s lowest production level since 2015. Saudi Arabia, along with its Gulf allies, has been leading the supply cuts, with reductions larger than required by OPEC’s agreement, despite pressure from U.S. President Donald Trump to lower prices.
Crude oil prices have remained high, with prices above $73 per barrel and peaking at over $75 per barrel last week, driven by Saudi supply curbs and reduced exports from Venezuela and Iran due to sanctions.
