With oil prices remaining high, Opec has scaled down plans to cut production in April from 2.5 million barrels per day (bpd) to 1.5 million bpd, the Middle East Economic Survey reports in its Monday edition.
"The new planned cut aims to bring Opec-10 (Opec without Iraq) production levels down by 1.5mn b/d from around 26mn bpd in March to 24.5mn bpd in April," the specialist weekly says.
"Experts expect leakage to reduce the actual size of the cut to 0.75-1.0 million bpd, bringing Opec-10 production down to 25mn bpd at a minimum," it adds.
"There is an acceptance that the commitment at the 10 February Algiers conference to reduce overproduction was not implemented in March, mainly in response to rising prices in that period.
"Yet ministers remain concerned about the seasonal drop-off in demand in the second quarter and the rise in Iraqi production, which is now approaching 2.6mn b/d," it says.
New York's benchmark crude oil contract broke above 37 dollars a barrel Friday for the first time since the Iraq war, kicked higher by tensions in major producer Venezuela.
Light sweet crude for delivery in April leapt 62 cents to 37.26 dollars a barrel at the close. Brent North Sea crude for April rose 46 cents to finish at 33.35 dollars.
Saudi Arabia, the world's top oil exporter, said during the week it would ensure adequate oil supplies but did not reveal if it wanted the Organisation of Petroleum Exporting Countries to reconsider planned output cuts.
Opec ministers are due to meet again on March 31 in Vienna and MEES notes that with the United States and the International Energy Agency strongly voicing concerns at high prices the cartel wants to leave all options open.
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