Iraq and Nigeria cut oil production ahead of OPEC+ rebounding output

In March, OPEC+ continued its strategy of limiting oil production, with notable cuts from Iraq and Nigeria. According to Bloomberg, the group reduced its overall output by 110,000 barrels per day (bpd), bringing the total to 27.43 million bpd. The coalition, which includes top oil-producing countries like Saudi Arabia and Russia, is now calling on its members to adhere to the pre-determined quotas.

With a notable cut of 50,000 barrels per day, Nigeria has significantly lowered its fuel production to 1.5 million bpd. Following suit, Iraq has reduced its output by 40,000 bpd, resulting in a new production level of 4.15 million bpd. Despite this move, Iraq is still exceeding its OPEC+ quota of 4 million bpd.

The production cuts were initially implemented to stabilize and support oil prices in the market. However, OPEC+ plans to gradually restore oil production in the coming months as the organization seeks to balance fuel supply and demand. Some member countries are reportedly still not adhering to the production limits set by the alliance, which could complicate efforts to effectively manage overall production.