Opec Output Edges Up Despite Mounting Political Chaos

Opec crude production edged up 90,000 b/d in April to 30.34mn b/d, marking the group’s first collective production increase in six months. In the medium term, output looks set to trend upwards, but the immediate outlook is less predictable.

April’s production increase was the result of disparate drivers. Firstly, the key Middle East Gulf producers increased output from recent lows. Given that Saudi Arabia, Iraq and the UAE are the group’s three largest producers, this had a substantial impact on overall volumes.

Meanwhile, despite the deteriorating security situation, Libyan output managed to increase to a six-month high of 1.20mn b/d in April. But while the critical oil and gas sector has so far remained insulated from General Khalifa Haftar’s campaign to seize Tripoli, that looks unlikely to last ( MEES, 3 May ). (CONTINUED - 897 WORDS)


table OPEC Wellhead Production, April 2019 (Mn B/D, MEES Estimates)