OPEC+ supply gap widens in March as sanctions hit Russian output -Breaking
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© Reuters. FILE PHOTO : This illustration, April 14, 2020 shows a 3D-printed pump jack positioned in front the displayed OPEC logo. REUTERS/Dado Ruvic/File Photo/File PhotoLONDON, (Reuters) – OPEC+ produced 1.45 mln barrels a day (bpd), below its March production targets, due to a decline in Russian output following West sanctions, according to Reuters.
Based on secondary sources, the report revealed that Russia’s March production was about 300,000.
The compliance with production cuts increased to 157%, up from 132% in Feb, according to data. This is the highest level since May 2020, when the company introduced new production cuts of approximately 10 million bpd to combat the effects of the pandemic.
OPEC+ is a group of OPEC, Russia and its allies. It agreed to a modest increase in oil production for May at 432,000 bpd. This was in response to pressure from major buyers to pump more.
The group is reducing production, but several producers are struggling to keep up, including West African countries that struggle with underinvestment, and an exodus international energy companies.
OPEC+, which met last month in Paris, also dropped the Paris-based International Energy Agency (IAEA) as one of its secondary sources and replaced it with Wood Mackenzie & Rystad Energy.
These changes were reflected in production data.
(The second paragraph has been updated with the correct Russian output figure.
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