Oil supplies from OPEC sank by half a million barrels a day in March, hitting a four-year low, as Saudi Arabia continued to slash output and Venezuela’s production plunged amid ongoing economic crisis.
The monthly production decline amounts to roughly half a percent of global oil demand. The drop is greater than the total monthly output of four of OPEC’s 14 members.
The producer group, along with Russia and other nonmember countries, is trying to keep 1.2 million barrels per day off the market through June, following a collapse in crude prices at the end of 2018. The production curbs by the so-called OPEC+ alliance aim to drain oversupply from the oil market and boost prices.
OPEC’s output fell by 534,000 bpd in March to 30.02 million bpd, according to independent sources cited by the group in its monthly report. This year, supply from the group has fallen by more than 1.5 million bpd, helping to drive international Brent crude prices 30 percent higher.