OPEC’s Oil Output Highest Since 1981, Newsletter Says

Crude oil output by OPEC jumped to 24.09 million barrels per day in March--the highest level since 1981--the Middle East Economic Survey, an influential newsletter, said Monday, helping to push already weak oil prices lower.

The Nicosia-based oil industry newsletter estimated that the Organization of Petroleum Exporting Countries’ oil production last month was marginally higher than last year’s monthly high of 24 million barrels per day, which was reached in December.

OPEC agreed last November on a production ceiling of 22.086 million barrels per day.

The high production levels pushed oil prices lower last month and in the first week of April.

Oil prices Monday continued to head lower amid perceptions that supplies were outstripping demand. The most active May crude oil contract sank below the key $19-per-barrel level and was off 24 cents at $18.91 in early trading.

News that Soviet Union oil workers postponed a strike, previously threatened to begin April 8, also weighed on crude oil prices.

The newsletter said the average price of OPEC’s basket of seven crudes declined $1.35 per barrel in March compared to February. OPEC’s declared “minimum reference price,” based on the same basket, is $18 per barrel.

“According to OPEC calculations made available to MEES, the average spot price of the OPEC basket fell to $17.75 per barrel in March, as against $19.10 in February and $19.99 in January,” the newsletter said.