Iran's oil production could slump in May to its record-low level since the 1980s, according to a monthly report issued by the International Energy Agency on Wednesday.
"Crude oil output in Iran fell 130 kb/d to 2.61 mb/d in April ahead of the ending of US waivers to eight buyers of Iranian oil. Already at the lowest level since September 2013, production in May could tumble to levels not seen since the 1980s war with Iraq," the IEA said.
The report also detailed the agency's forecast for global oil demand growth in 2019 which is predicted to be reduced by 90,000 barrels per day to 1.3 million barrels per day.
"Our 2018 oil demand growth estimate has been revised down by 70 kb/d to 1.2 mb/d and our 2019 forecast is reduced by 90 kb/d to 1.3 mb/d," the IEA said.
Meanwhile, the report stated that the Organization of the Petroleum Exporting Countries (OPEC) complied with the deal on production cuts in April by 131 percent.
"In April, OPEC crude output rose for the first time in four months as higher supply from Libya, Nigeria and Iraq more than made up for a significant loss in Iran. Production rose 60 kb/d m-o-m [month-on-month] to 30.21 mb/d, but was down 1.21 mb/d on a year ago," the IEA added.
The agency also added that non-cartel members' compliance amounted to 151 percent.
"The stronger [non-OPEC] performance was thanks to deeper cuts from Kazakhstan, Azerbaijan and Russia that raised non-OPEC compliance to 151%. OPEC's compliance rate was 131% as Saudi Arabia produced far below its supply target," the IEA said.
"At 11.56 mb/d, [Russia's] total oil production was 185 kb/d below the October 2018 baseline but still 265 kb/d higher than a year ago. Russia had pledged to curb production by 230 kb/d, but has always maintained that the cuts would be gradual. In April compliance with the deal improved to a rate of 80%, up from 50% in March," the IEA said.
The Organization of Petroleum Exporting Countries is an organization of 14 oil-producing nations controlling 61 percent of the world's oil exports and holding 80 percent of the world's proven oil reserves.