OPEC output hits new low on Trump's sanctions, supply pact- Reuters survey

* OPEC oil output drops by 170,000 bpd in June
* Saudi increases output, Iran and Venezuela production
drops
* New supply-cut accord started in January
*
* For production by country, compliance, click on
By Alex Lawler
LONDON, July 5 (Reuters) - OPEC oil output sank to a new
five-year low in June as a rise in Saudi supply did not offset
losses in Iran and Venezuela due to U.S. sanctions and other
outages elsewhere in the group, a Reuters survey found.
The 14-member Organization of the Petroleum Exporting
Countries pumped 29.60 million barrels per day (bpd) last month,
the survey showed, down 170,000 bpd from May's revised figure
and the lowest OPEC total since 2014, the survey showed.
The Reuters survey suggests that even though Saudi Arabia is
raising output following pressure from U.S. President Donald
Trump to bring down prices, the kingdom is still voluntarily
pumping less than an OPEC-led supply deal allows it to. OPEC
renewed the supply pact at meetings this week.
Despite lower supplies, crude oil LCOc1 has fallen from a
six-month high above $75 a barrel in April to below $63 on
Friday, pressured by concern about slowing economic growth.
"The decision of OPEC+ at the beginning of the week to
extend its production cuts has done nothing to change this,"
Carsten Fritsch, analyst at Commerzbank, said of this week's
drop in prices.
"A series of disappointing economic data from the United
States, China and Europe has sparked new concerns about demand."
OPEC, Russia and other non-members, known as OPEC+, agreed
in December to reduce supply by 1.2 million bpd from Jan. 1 this
year. OPEC's share of the cut is 800,000 bpd, to be delivered by
11 members - all except Iran, Libya and Venezuela.
The producers at meetings this week in Vienna extended the
deal until March 2020. In June, the 11 OPEC members bound by the agreement achieved
156% of pledged cuts, the survey found, more than in May, due to
lower production in Iraq, Kuwait and Angola. All three of the
exempt producers also pumped less oil.
The United States reimposed sanctions on Iran in November
after pulling out of a 2015 nuclear accord between Tehran and
six world powers. Aiming to cut Iran's sales to zero, Washington
this month ended sanctions waivers for importers of Iranian oil.
Iran's crude exports have declined to less than 400,000 bpd
from more than 2.5 million bpd in April 2018.
In Venezuela, supply fell slightly in June due to the impact
of U.S. sanctions on state oil company PDVSA and a long-term
decline in production, according to the survey.
Among countries pumping more, Saudi Arabia boosted supply by
100,000 bpd to 9.8 million bpd from May's revised figure, the
survey found. This is still below its OPEC quota of 10.311 bpd.
Output also rose in Nigeria - which last month overproduced
its target by the largest margin.
June output was the lowest by OPEC since April 2014,
excluding membership changes that have taken place since then,
Reuters surveys show.
The Reuters survey aims to track supply to the market and is
based on shipping data provided by external sources, Refinitiv
Eikon flows data and information provided by sources at oil
companies, OPEC and consulting firms.