OPEC output fell 50k bpd in March

• Production at 26.42 million barrels per day

The largest cuts came from Iraq and Nigeria. Iraq had been producing above quota and agreed to cut by 130K in March. They fell short of that and will be under pressure to do more in April.

Overall, productionw as about 190K bpd above target in March, something that will irk Saudi Arabia. Market participants can see that two ways: 1) OPEC could be threatened, or 2) even with excess production, prices are risen; signalling a market that’s tighter than it appears.

WTI crude was last down 6-cents on the day to $83.15.

This article was written by Adam Button at www.forexlive.com.