OPEC Production Plunges as Saudis Deliver Extra Oil Cutbacks - Bloomberg

OPEC Production Plunges as Saudis Deliver Extra Oil Cutbacks - Bloomberg

OPEC’s crude production plunged last month as Saudi Arabia delivered extra cutbacks intended to clear the remnants of a global supply glut.

Output from the group fell by 920,000 barrels a day -- the biggest drop in eight months -- to 24.87 million a day, according to a Bloomberg survey. As promised, the kingdom slashed its production by almost 1 million barrels a day, or about 11%.

The Organization of Petroleum Exporting Countries and its allies have been constricting oil supplies since the pandemic crushed demand almost a year ago. To disperse the lingering stockpile surplus, the Saudis pledged extra reductions during February and March. Their efforts have paid off, reviving oil prices back to pre-crisis levels above $60 a barrel in London.

The 23-nation coalition will meet on Thursday to decide whether it can relax some of the measures in April. It’s widely expected they’ll add 500,000 barrels a day of the 7 million barrels still offline, and that Riyadh will confirm the expiry of its additional million-barrel curb.