OPEC crude production rose in March as Iranian output climbed to the highest level in almost four years.
The Organization of Petroleum Exporting Countries increased production by 64,000 barrels to 33.09 million a day last month, according to a Bloomberg survey of oil companies, producers and analysts.
The group set aside its output target of 30 million barrels a day at its Dec. 4 meeting in Vienna. Saudi Arabia, Russia, Venezuela and Qatar tentatively agreed on Feb. 16 to cap production at January levels. They’ll meet with other countries, both in and out of OPEC, in Doha on April 17.
‘Talk is cheap,’ said Michael Lynch, president of Strategic Energy & Economic Research in Winchester, Massachusetts. ‘It’s hard to be really bullish about the oil market when production keeps going up. The OPEC output totals are a little reminder that we’re still in the midst of a massive glut.’
This post was published at David Stockmans Contra Corner on April 4, 2016.
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