In this list
Oil | Shipping

OPEC+ crude oil production drops in March as sanctions hit Russian output: Platts survey

Crude Oil

Platts Crude Oil Marketwire

Crude Oil | Natural Gas | Natural Gas (North America) | Shipping

Market Movers Americas, Dec 4-8: US crude weighs OPEC+ decision, Panama Canal continues to impact shipping

Oil | Energy Transition | Energy

APPEC 2024

Shipping | LNG | Natural Gas

LNG freight rates from US Gulf Coast to NWE, Asia weaken as demand lags

Energy | Oil | Crude Oil

Dated Brent Price Assessment

Agriculture | Grains | Crude Oil | Energy Transition | Emissions | Natural Gas | Oil & Gas

Commodity Tracker: 6 charts to watch this week

For full access to real-time updates, breaking news, analysis, pricing and data visualization subscribe today.

Subscribe Now

OPEC+ crude oil production drops in March as sanctions hit Russian output: Platts survey

Highlights

OPEC pumps 60,000 b/d less, non-OPEC output falls 240,000 b/d

Russian output declines 260,000 b/d as sanctions hit

Saudi production falls 10,000 b/d to 10.45 million b/d

  • Author
  • Rosemary Griffin    rosemary.griffin@spglobal.com; Herman Wang
  • Editor
  • Haripriya Banerjee
  • Commodity
  • Oil Shipping
  • Topic
  • OPEC+ Oil Quotas and Geopolitics

To get Platts OPEC+ survey sooner, join Platts Dimensions Pro.

Not registered?

Receive daily email alerts, subscriber notes & personalize your experience.

Register Now

Crude oil production from OPEC+, a coalition of OPEC and other oil producers, fell by 300,000 b/d in March as sanctions hit Russian output, the latest Platts survey by S&P Global Commodity Insights from April 11 found.

OPEC production decreased 60,000 b/d to 28.97 million b/d, while non-OPEC allies saw output fall by 240,000 b/d to 13.40 million b/d in March.

Production in the largest non-OPEC producer in the group, Russia, fell by 260,000 b/d to 9.6 million b/d in March. This followed the introduction of G7 price caps and EU import bans on most Russian crude and oil products from Dec. 5, 2022, and Feb. 5, respectively. The restrictions are part of Western sanctions imposed in response to Russia's invasion of Ukraine.

Russian officials said previously that the country will cut crude output by 500,000 b/d from February levels from March until the end of 2023. They said that this is in order to reduce the discount on Russian crude and to stabilize deliveries. Sanctions are expected to further hit Russian output in coming months.

A recovery in Kazakhstan's production partially offset Russia's significant drop in production on the non-OPEC side.

In contrast, OPEC's biggest producer, Saudi Arabia, saw production hold relatively steady at 10.45 million b/d in March, down just 10,000 b/d from February. Stronger exports were supported by draws from inventories, while the Jazan refinery ramped up runs, the survey found.

Saudi Arabia is one of the OPEC+ countries that said April 2 that they will join Russia in introducing voluntary cuts from May until the end of 2023. Saudi Arabia plans to cut 500,000 b/d. Iraq has pledged to cut 211,000 b/d, the UAE 144,000 b/d, Kuwait 128,000 b/d, Kazakhstan 78,000 b/d, Algeria 48,000 b/d, Oman 40,000 b/d and Gabon 8,000 b/d.

The latest voluntary cuts total 1.66 million b/d and add to existing quotas.

Iraq recovery

Overall OPEC production dropped, as seven of its 13 member countries saw production decreases that more than offset increases in output in Iraq. While most of these drops were marginal, Angolan output dropped by 40,000 b/d to 1.91 million b/d as a result of maintenance at the Dalia field.

Iraqi output grew by 60,000 b/d to 4.39 million b/d, the survey found. Production recovered from disruptions linked to pipeline repairs following the major earthquake that hit Turkey and Syria in early February, as well as maintenance at the West Qurna 2 project.

With several countries still struggling to raise or even maintain output due to internal disruptions or lack of investment, the OPEC+ alliance continues to massively underproduce its quotas, even after the group agreeing to slash them by 2 million b/d from November 2022 through the end of 2023.

Overall OPEC+ compliance among countries with quotas was 160% in March, according to S&P Global calculations, meaning the 22 members combined for a 2.173 million b/d shortfall to their production targets. This is the largest gap between OPEC+ production and quotas since October 2022, the month before the group instituted its 2 million b/d cut.

OPEC members Iran, Libya and Venezuela are exempt from quotas.

OPEC+ ministers are next due to meet on June 3-4, with many analysts expecting a tight market in the second half of the year.

The Platts survey figures measure wellhead production, and are compiled using information from oil industry officials, traders and analysts, as well as reviewing proprietary shipping, satellite and inventory data.

OPEC+ Production in March (million b/d)

OPEC-10 March 2023 Change February 2023 Quota over/under
Algeria 1 -0.01 1.01 1.007 -0.007
Angola 1.01 -0.04 1.05 1.455 -0.445
Congo-Brazzaville 0.28 0.01 0.27 0.310 -0.030
Equatorial Guinea 0.05 0.00 0.05 0.121 -0.071
Gabon 0.20 0.01 0.19 0.177 0.023
Iraq 4.39 0.06 4.33 4.431 -0.041
Kuwait 2.68 0.00 2.68 2.676 0.004
Nigeria 1.43 -0.02 1.45 1.742 -0.312
Saudi Arabia 10.45 -0.01 10.46 10.478 -0.028
UAE 3.04 -0.02 3.06 3.019 0.021
TOTAL 24.53 -0.02 24.55 25.416 -0.886
OPEC EXEMPT March 2023 Change February 2023 Quota over/under
Iran 2.60 -0.02 2.62 N/A N/A
Libya 1.15 -0.02 1.17 N/A N/A
Venezuela 0.69 0.00 0.69 N/A N/A
TOTAL OPEC-13 28.97 -0.06 29.03 N/A N/A
NON-OPEC March 2023 Change February 2023 Quota over/under
Azerbaijan 0.52 -0.01 0.53 0.684 -0.164
Bahrain 0.19 0.00 0.19 0.196 -0.006
Brunei 0.07 -0.01 0.08 0.097 -0.027
Kazakhstan 1.60 0.05 1.55 1.628 -0.028
Malaysia 0.39 -0.01 0.40 0.567 -0.177
Oman 0.84 0.00 0.84 0.841 -0.001
Russia 9.60 -0.26 9.86 10.478 -0.878
Sudan 0.05 0.00 0.05 0.072 -0.022
South Sudan 0.14 0.00 0.14 0.124 0.016
TOTAL NON-OPEC 13.40 -0.24 13.64 14.687 -1.287
OPEC-10 + NON-OPEC March 2023 Change February 2023 Quota over/under
TOTAL 37.93 -0.26 38.19 40.10 -2.173
OPEC+ March 2023 Change February 2023 Quota over/under
TOTAL 42.37 -0.30 42.67 N/A N/A

Source: Platts OPEC+ survey by S&P Global Commodity Insights

Click here to read the previous survey: OPEC+ crude oil production drops in February despite uptick in Russia: Platts survey