In April 2025, the Organization of the Petroleum Exporting Countries (OPEC) saw a slight decline in oil output, despite a planned increase in production. According to a Reuters survey released on May 8, 2025, OPEC produced 26.60 million barrels per day (bpd) last month, a decrease of 30,000 bpd from March 2025. This drop was primarily attributed to a significant reduction in Venezuelan supply, which was impacted by renewed U.S. efforts to limit oil flows, along with smaller decreases in production from Iraq and Libya.
The reduction in output comes as OPEC+, which includes OPEC and its allies like Russia, began unwinding its most recent layer of output cuts in April. The group has plans to accelerate production hikes in May and June, citing supportive market fundamentals such as low inventory levels. However, the full extent of these increases will depend on the effectiveness of U.S. sanctions aimed at curbing oil supplies from Iran and Venezuela.
Among the OPEC members, Venezuela experienced the most significant drop in production for April. Exports from the country fell sharply due to cargo cancellations for U.S. oil company Chevron, which forced ships to return. Meanwhile, Iraq, under pressure to comply with OPEC+ output quotas, also curtailed its production during the month.
In contrast, there was little change in output from major producers like Saudi Arabia, the United Arab Emirates, and Kuwait, despite higher OPEC+ quotas for April. While the survey indicated that the UAE and Iraq were close to meeting their quotas, estimates from the International Energy Agency suggested that they may be producing significantly more than reported.
On the other hand, Iran saw an increase in its oil exports in April, contributing to OPEC's largest output hike for the month. The recent U.S. measures have had a minimal impact on Iran's production levels, allowing it to boost its exports.
The Reuters survey aims to track supply to the market, utilizing data from financial groups, oil companies, and other sources to provide a comprehensive overview of the current oil production landscape.
As the global oil market continues to navigate the complexities of supply and demand, the interplay between OPEC's production decisions and U.S. sanctions will remain a critical factor influencing oil prices and availability. The upcoming months will be telling as OPEC+ seeks to balance its output with the realities of the market, particularly in light of geopolitical tensions and economic pressures.
