(EnergyAsia, April 26 2011, Tuesday) — Crude oil production by the Organization of Petroleum Exporting Countries declined by around 2% on-month to 29.17 million b/d in March, said energy media group Platts.
There are signs that the cartel’s output could continue declining in April, with Iran seen cutting production.
Saudi Arabia, the holder of the world’s biggest crude reserves, surprised the market by lowering its output by 300,000 b/d earlier this month, according to Riyadh-based Banque Saudi Fransi.
As a result, oil future prices have been well-supported at above US$110 a barrel for most of April.
The decline in OPEC’s production means the group’s output has failed to offset the significant drop of nearly one million b/d in production in war-torn Libya.