Oil output in Iran and Venezuela, under U.S. sanctions, has fallen by more than that of other OPEC members party to a supply cut pact, suggesting President Trump’s policies have had a greater impact on oil production than OPEC itself.
The sanctions have deepened the impact of supply cuts agreed by the Organization of the Petroleum Exporting Countries, which is expected at meetings with its allies next Monday and Tuesday in Vienna to renew the accord.
OPEC, Russia and other non-members, an alliance known as OPEC+, agreed in December to reduce supply by 1.2 million barrels per day from Jan. 1. OPEC’s share of the cut is 800,000 bpd, to be delivered by 11 members – all except Iran, Libya and Venezuela.
The actual cut is more than 2.5 million bpd, according to OPEC figures, because top exporter Saudi Arabia has voluntary reduced supply by more than the deal requires and because of U.S. sanctions on two OPEC founder members Venezuela and Iran. Read More