Venezuela's oil production dropped to its worst level in 16 years and dragged OPEC down

Venezuelan oil production reached about 900,000 barrels a day in March, its worst record of the last 16 years, hit by US sanctions and power cuts, according to a survey by Reuters on the production of the Organization of Petroleum Exporting Countries (OPEC).

The fall compared to February, it is 150,000 barrels a day and it constitutes the largest part of the unexpected decline in the crude oil supply of the OPEC countries.

With a production of only 900,000 barrels a day, the Venezuelan oil industry is focused on its moment since January 2003, when a strike PDVSA, state oil company, has reduced its production to 630,000 barrels per day, according to figures from the United States Energy Information Administration (EIA).

On the other hand OPEC's total crude oil supply fell in March to its lowest level in four years, by the decline in production of Venezuela and Iran and by the fact that Saudi Arabia has exceeded the group's production reduction target, which had been agreed at previous meetings to stabilize the price.

In this regard, Brent oil, a benchmark in Europe, was quoted Monday at 68.31 dollars a barrel, up 1.08%, while the WTI, observed by the United States, reached a price of 60 , 57 dollars a barrel, with an increase of 0.71%.

In total, the 14 member countries of OPEC they pumped 30.40 million barrels per day (bpd) last month, down 280,000 bpd from February (150,000 of which correspond to Venezuela) and the lower block volume since February 2015, according to the survey Reuters.

In addition to Venezuela, Iran suffered unintended reductions in production, also because of sanctions imposed by the United States.

OPEC, Russia and other non-member countries, an alliance known as OPEC +, reached an agreement in December to reduce the supply of oil by 1.2 million barrels per day as of January 1, as part of a general strategy started in 2017 and limited in recent months.

OPEC's share of the reduction in production is 800,000 b / d, among 11 members, it should be recalled that Iran, Libya and Venezuela were exempted from this reduction because of their delicate internal situation.

But the problems in Iran and Venezuela led to this decline, but Saudi Arabia cut production beyond what had been agreed, and OPEC + reached 135% of what had been agreed, after recorded 101% February