OPEC Output Slides Again Amid Planned Cuts and U.S. Sanctions

• OPEC’s crude production slumped again last month as the cartel implemented planned cutbacks in full and some members were hit by U.S. sanctions.

 

• Although the group has now fully implemented the curbs announced last year, almost half of the output drop was caused by unplanned losses in Venezuela and Iran, which are under trade restrictions imposed by President Donald Trump.

 

• The plunge shows that, despite Trump’s guidance this week that OPEC should “relax” instead of restraining supply, the group’s production is highly influenced by the president’s foreign policy.

 

• At about $66 and $57 (Brent and WTI, respectively) per barrel, crude prices remain below the levels required by the kingdom, and most other OPEC members, in order to cover government spending.

(Source: Bloomberg)