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How Is OPEC Crude Production Trending ahead of Doha Meeting?

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Apr. 4 2016, Published 11:24 a.m. ET

OPEC crude oil production 

A Reuters monthly survey reported that OPEC’s (Organization of the Petroleum Exporting Countries) crude oil production rose to 32.5 MMbpd (million barrels per day) in March 2016 from 32.4 MMbpd in February 2016. OPEC production rose due to increasing production from Iran and Iraq. To learn more about Iran’s crude oil production and its production strategy, read the next part of the series.

Bloomberg surveys suggest that OPEC crude oil production rose by 64,000 bpd (barrels per day) in March 2016 compared to the previous month. The rise in OPEC crude oil production raises questions about how successful the oil producer meeting will be on April 17, 2016.

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OPEC members’ crude oil production

Algeria, Angola, Ecuador, Indonesia, Iran, Iraq, Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, the United Arab Emirates (or UAE), and Venezuela are members of OPEC. These countries’ March crude production figures are as follows:

  • Algeria’s production fell by 10,000 bpd to 1.1 MMbpd in March 2016 compared to the previous month.
  • Angola’s production rose by 41,000 bpd to 1.8 MMbpd in March 2016 compared to last month.
  • Iran’s production rose by 100,000 bpd to 3.2 MMbpd in March 2016 compared to the previous month.
  • Iraq’s crude oil production rose by 150,000 bpd to 4.4 MMbpd in March 2016 compared to last month.
  • Kuwait’s production was flat at 3 MMbpd in March 2016 compared to the previous month.
  • Nigeria’s production fell by 74,000 bpd to 1.8 MMbpd in March 2016 compared to last month.
  • Saudi Arabia’s crude oil production fell by 10,000 bpd to 10.2 MMbpd in March 2016 compared to the previous month.
  • UAE’s production fell by 90,000 bpd to 2.9 MMbpd in March 2016 compared to last month.
  • Venezuela’s production fell by 11,000 bpd to 2.4 MMbpd in March 2016 compared to the previous month.

Impact on crude oil producers 

OPEC’s crude oil production is close to a record despite the OPEC and Non-OPEC deal. This could limit the upside for crude oil prices. The tussle for market share and lower oil prices are driving oil producers to pump more to offset lower oil prices. Low crude oil prices impact major Middle East oil producers like Saudi Aramco, National Iranian Oil Company, Kuwait Petroleum Company, Qatar Petroleum, and Oman Oil Company. Prices also impact US oil producers like Warren Resources (WRES), Hess (HES), Bill Barrett (BBG), and Bonanza Creek Energy (BCEI).

The ups and downs in oil prices impact oil and gas ETFs and ETNs like the VelocityShares 3X Inverse Crude Oil ETN (DWTI), the Vanguard Energy ETF (VDE), and the iShares U.S. Energy (IYE).

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