Opec's April oil output surged to 13-month high before cutback pact

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Opec's April oil output surged to 13-month high before cutback pact
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13-member cartel pumped 30.25 million barrels per day this month. FMTNews OpecOil

LONDON: Opec oil output has jumped in April to a 13-month high as Saudi Arabia and its Gulf allies opened the taps following the collapse of an Opec-led supply pact, offsetting further declines in Libya, Iran and Venezuela.

The resulting glut compounded the hit to prices that the coronavirus outbreak is having on demand, sending oil to a 21-year low below US$16 a barrel this month. Even though prices are now rising, the supply outlook remains ample, analysts say. Opec+ agreed earlier this month to cut supply by a record 9.7 million bpd from May 1 to offset the virus- and lockdown-induced demand slump, bringing to an end the period of flooding the market.

The United Arab Emirates also ramped up production to 3.85 million bpd, sources in the survey said, believed to be a record monthly rate for Opec’s third-largest producer. Kuwait and Nigeria also boosted output.

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