Kuwait saw the largest decline in oil production, reflecting a full month of export disruptions. Saudi Arabia and Iraq also showed further declines, although the United Arab Emirates was the only one to increase production. Like Saudi Arabia, the UAE has an export route that bypasses the Strait of Hormuz, and tanker data showed an increase in exports from the UAE in April.
The survey found that in addition to the UAE, which withdrew from OPEC on May 1, Venezuela and Libya also increased production in April. According to the Reuters poll, April production is the lowest for OPEC since at least 2000, excluding changes in composition since then, and well below levels reached during the COVID-19 pandemic in 2020 when demand collapsed.
Eight members of the OPEC+ producer group, including Russia, have agreed to resume raising oil output. Russia’s oil production faced downside risks in April despite plans for growth. Sources reported a possible drop of 300-400 thousand bpd compared to the first quarter due to technical difficulties, logistical problems and restrictions.
Despite the drop in physical production volumes, Russia’s oil revenues rose to $9 billion in April. The growth in revenues was due to a sharp jump in global oil prices.
