OPEC February oil output plunges on Libyan unrest, supply cuts
On average, OPEC pumped 27.84 million bpd in February
OPEC oil output dropped in February as Libyan supply collapsed due to the blockading of ports and oilfields, while Gulf members overdelivered on a new production limiting accord, a Reuters survey said.
On average, OPEC pumped 27.84 million barrels per day (bpd) in February, according to the survey, down 510,000 bpd from January’s figure. This is the lowest figure in ten years.
Despite the drop in supply, crude prices have dropped to below $50 a barrel on concern that the coronavirus outbreak will shrink oil demand.
OPEC will meet this week to discuss further steps to support the market, said Reuters.
OPEC, Russia and other allies, known as OPEC+, agreed to deepen an existing supply cut by 500,000 bpd from Jan. 1, 2020.
February’s output was the lowest by OPEC since at least 2009, the year in which the group implemented supply cuts due to the financial crisis, according to Reuters survey records.
Oil output in Libya has dived due to a blockade of ports and fields by groups loyal to eastern-based commander Khalifa Haftar. Production in Libya averaged 155,000 bpd during the month, the survey found, down from 760,000 bpd in January.