London: OPEC oil output rose in May by less than the volume planned, a Reuters survey found, as Iraq made further cuts to compensate for earlier pumping above target and Saudi Arabia and the United Arab Emirates made smaller hikes than allowed.
The Organisation of the Petroleum Exporting Countries pumped 26.75 million barrels per day last month, up 150,000 bpd from April’s total, the survey showed on Monday, with Saudi Arabia making the largest increase.
The Organisation of the Petroleum Exporting Countries pumped 26.75 million barrels per day last month, up 150,000 bpd from April’s total, the survey showed on Monday, with Saudi Arabia making the largest increase.
OPEC+, which comprises OPEC and its allies, including Russia, is accelerating its plan to unwind its most recent layer of output cuts. At the same time, some members are required to make extra cuts to compensate for earlier overproduction, in theory limiting the impact of the hikes.
Under an agreement by eight OPEC+ members covering May output, the five of them that are OPEC members – Algeria, Iraq, Kuwait, Saudi Arabia and the United Arab Emirates – were to raise output by 310,000 bpd.
According to the survey, the actual increase by the five was 180,000 bpd, as compensation cuts by Iraq and lower exports by Saudi Arabia limited the increase. The biggest hike of 130,000 bpd came from Saudi Arabia, the survey found.
Iraq, which is under pressure to boost compliance with OPEC+ output quotas, curbed output, the survey found, to meet its commitment for compensation cuts in May.
The United Arab Emirates also pumped below its OPEC+ quota in May, the survey found, to reflect the country’s relatively low commitments for compensation cuts, a source with knowledge of the issue said.
There is a wide range of estimates of output in Iraq and the UAE with many outside sources putting the countries’ output higher the the countries themselves.
While the Reuters survey and April data provided by OPEC’s secondary sources show they are pumping close to the quotas, other estimates, such as those of the International Energy Agency, say they are pumping significantly more.
The Reuters survey aims to track supply to the market and is based on flows data from financial group LSEG, information from other companies that track flows such as Kpler, and information provided by sources at oil companies, OPEC and consultants.
