OPEC August oil output rises for 2nd month as cut eased -survey

Published 01/09/2020, 16:42
Updated 01/09/2020, 16:48
© Reuters.
LCO
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* OPEC+ supply cut tapered on Aug. 1, allowing output boost
* Saudi Arabia posts biggest increase, UAE exceeds new quota
* Iraq, a laggard in earlier months, posts higher compliance
* Production by country: By Alex Lawler
LONDON, Sept 1 (Reuters) - OPEC oil output has risen by
about 1 million barrels per day (bpd) in August, a Reuters
survey found, as the group and allies eased record oil supply
curbs as the global economy and demand began to recover from the
coronavirus pandemic.
The 13-member Organization of the Petroleum Exporting
Countries pumped 24.27 million bpd on average in August, the
survey found, up 950,000 bpd from July's figure and a further
boost from the three-decade low reached in June.
An easing of lockdowns and lower supply from OPEC, Russia
and allies, known as OPEC+, have helped oil LCOc1 climb above
$46 a barrel from April's 21-year low of below $16. Still,
concern of a coronavirus second wave is weighing on price gains
and focusing minds in OPEC.
"Now we are on better ground, but a full recovery is not
there yet," said an OPEC delegate. "We must continue to monitor
the market and coronavirus situation very carefully."
OPEC+ from May 1 made a record cut of 9.7 million bpd, or
10% of global output, after the virus destroyed a third of world
demand. From Aug. 1, the cut tapered to 7.7 million bpd until
December, of which OPEC's share is 4.868 million bpd.
In August, OPEC countries bound by the deal delivered 99% of
the pledged reduction, the survey found. Compliance in July was
revised up to 95%.

SAUDI, UAE
August's increase is similar to that seen in July and means
OPEC is now pumping almost 2 million bpd more than June's
figure, which was the lowest since 1991 based on Reuters surveys
and OPEC data. PRODN-TOTAL
The biggest rise in supply in August came from Saudi Arabia,
which pumped 9 million bpd, up 600,000 bpd from July and close
to its new quota, the survey found.
The second-biggest rise came from the United Arab Emirates,
which pumped more than its quota after hot weather and people
holidaying at home boosted local demand. Kuwait
also raised output, remaining in line with its new target.
Smaller increases came from Angola and Algeria.
Iraq and Nigeria, laggards in previous months of the OPEC+
deal, both reduced output, the survey found, with Iraq reaching
its highest compliance in recent years.
The cut from Iraq, though, was less than the volume pledged
and Nigeria, while boosting compliance
significantly, remains short of the 100% level according to the
survey. Iranian, Venezuelan and Libyan supply was little changed.
All three are exempt from voluntary cuts because of U.S.
sanctions or internal issues limiting output. Libyan output may
begin to rise if proposals to lift a months-long oil blockade
are adopted. The Reuters survey aims to track supply to the market and is
based on shipping data provided by external sources, Refinitiv
Eikon flows data, information from tanker-trackers such as
Petro-Logistics and Kpler, and information provided by sources
at oil companies, OPEC and consultants.

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