World oil supply falls in April as Opec cuts: IEA

World oil production declined 440,000 barrels per day in April as Opec producers cut back supply and non-opec output failed to grow as expected, the International Energy Agency said on Wednesday.
Opec crude supply fell by 415,000 bpd, driven by a 380,000 bpd fall from the 10 Opec members with quotas as they partially enforced a deal to cut quotas by one million bpd from April, the IEA said in its monthly Oil Market Report.
The Opec-10 produced 25.4 million bpd in April, as Saudi Arabia and the UAE cut supplies by around 150,000 bpd each and Nigeria, Iran, Algeria and Venezuela all trimmed output.
Opec's curbs have helped push US crude oil above $40 a barrel for the first time in 13 years. Saudi Oil Minister Ali al-Naimi has called for Opec to increase supply quotas by at least 1.5 million bpd at its June 3 meeting.
"Recent calls for an upward adjustment to production targets allied to higher May export nominations could suggest a rebound in Opec-10 crude supply," said the IEA, which advises 26 industrialised nations on energy policy.
Total Opec supply in April was down 415,000 bpd at 27.8 million bpd, further curbed by export disruptions to Iraqi supply, which caused its production to dip to 2.34 million bpd, the IEA said.
World supply has been further constrained by slower-than-expected growth in non-Opec production.
April non-Opec supply was 30,000 bpd lower than in March as North Sea maintenance, a seasonal decline in western Canadian supply and renewed Australian gas plant problems cut into supply.
The IEA has also revised down its full-year forecasts for non-Opec production growth.
"This month sees a further reduction in 2004's non-Opec supply growth of 100,000 bpd, to 1.2 million bpd, following last year's 900,000 bpd rise," the IEA said.
"Supply from the US Gulf of Mexico has been revised down 35,000 bpd for 2003 and by 100,000 bpd for this year," the IEA said. "A 45,000 bpd upward revision for Russia only partially counteracts lower expectations for Oman, Brazil and Angola," it added.
The lower growth in rival supply, coupled with rising global fuel consumption, means that demand for Opec's oil will be stronger than previously forecast, the IEA said.
"In all, supply and demand changes boost the 2004 'call on Opec crude and stock change' by 500,000 bpd to 26.4 million bpd, it said.
The second quarter 'call' on Opec crude is now 24.8 million bpd and rises to 27.5 million bpd by end-year, the IEA said.