ByCharles Kennedy– Apr 07, 2025, 11:30 AM CDT
A Reuters survey on Monday showed OPEC oil output falling in March, driven primarily by drops in supply from Nigeria, Iran and Venezuela.
OPEC pumped 26.63 million barrels per day in March, or 110,000 bpd less than February, according to the survey.
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Nigeria, Iran, and Venezuela each saw a drop in March output of 50,000 bpd.
Nigeria is still pumping just above its OPEC quota, but in March, the country reduced supply to its new Dangote refinery.
With respect to Iran, February’s output was a record high not seen in six years, and comes as the White House seeks to further disrupt Iranian exports amid intense wrangling over a new nuclear deal that has been accompanied with military threats from Washington and retaliatory threats from Tehran.
On the Venezuela oil scene, new tariffs and the reversal of operating licenses by Washington led to the March drop in exports.
As of April 3, countries purchasing Venezuelan oil face a 25% tariff on all trade with the U.S., following President Trump’s executive order from March 24. The order also requires companies with sanctions waivers, including Chevron, Repsol, and Maurel et Prom, to leave Venezuela by May 27.
Despite these measures, many traders remain undeterred. Tankers continue to arrive in Venezuela, contrary to Trump’s March 30 claim that ships had all left to avoid tariffs. Vessel tracking data shows numerous tankers still docking at Venezuelan terminals, indicating that trade in Venezuelan oil persists.
The Reuters survey follows Saudi Arabia’s cutting of the official selling prices for its oil sharply ahead of a production boost set for next month. This was the sharpest price cut in over two years.
It also follows last week’s OPEC+ announcement that it would boost production by three times the originally planned amount of 135,000 bpd in May.
By Charles Kennedy for Oilprice.com
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