In March, the Federal Government reduced crude oil supplies to local refineries, according to data from a Reuters survey. This decision comes as the Organization of the Petroleum Exporting Countries (OPEC) saw a decline in oil output ahead of a planned output increase.
Nigeria, along with Iran and Venezuela, reduced their oil supplies amid renewed efforts by the U.S. to limit oil flows from these countries. OPEC’s total oil production dropped to 26.63 million barrels per day (bpd) in March, a decrease of 110,000 bpd from February’s output. Nigeria, Iran, and Venezuela experienced the largest declines in production.
OPEC+, which includes OPEC and its allies, including Russia has started to gradually unwind its previous output cuts. The extent of the planned increase in production will depend on the impact of U.S. sanctions targeting Iran and Venezuela’s oil exports.
In March, oil supplies from Nigeria, Iran, and Venezuela each fell by 50,000 bpd, the survey revealed. Nigerian supply dropped due to reduced deliveries to the Dangote refinery, despite an increase in exports. Nigeria is still producing slightly above its OPEC+ target, according to the survey, with Gabon being the least compliant member.
Iran’s output declined from February, which had marked the highest level of production since 2018. This decrease comes as the U.S. under President Trump has intensified efforts to restrict Iran’s oil exports.
Similarly, Venezuela’s oil exports fell in March, impacted by U.S. sanctions, including secondary tariffs and the cancellation of licenses for energy sector operations.
On the other hand, output from OPEC’s two largest producers, Saudi Arabia and Iraq, increased slightly. However, both countries are still producing below their OPEC+ targets, while the United Arab Emirates (UAE) is on target.
Both major oil benchmarks have dropped by more than 10% over the past week. While the survey and data from OPEC’s secondary sources indicate that the UAE and Iraq are close to their quotas, other estimates, such as those from the International Energy Agency, suggest that these countries are actually producing significantly more than their targets.
Overall, the survey found no significant increases in output for March.
