Trump's sanctions hit OPEC oil output despite Saudi boost-survey

* OPEC oil output drops by 60,000 bpd in May
* New supply-cut accord started in January
* Iran posts OPEC's biggest supply drop
* For production by country, compliance, click on
By Alex Lawler
LONDON, May 31 (Reuters) - Top oil exporter Saudi Arabia has
raised production in May, a Reuters survey found, but not by
enough to compensate for lower Iranian exports which collapsed
after the United States tightened the screw on Tehran.
The 14-member Organization of the Petroleum Exporting
Countries pumped 30.17 million barrels per day (bpd) in May, the
survey showed, down 60,000 bpd from April and the lowest OPEC
total since 2015, the Reuters survey showed.
The 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 in place this year allows it to.
"We are seeing OPEC supply falling in May to its lowest in
numerous years," said an industry source who monitors OPEC
output. "There are not many big increases this month, and lots
of countries posting lower supply."
Despite lower supplies, crude oil LCOc1 has fallen from a
six-month high above $75 a barrel in April to below $68 on
Thursday, pressured by concern about the economic impact of the
U.S.-China trade dispute.
An OPEC delegate said most countries had kept a lid on
output in May, although they might have sought to boost sales in
the faster-growing Asian market.
"Producers may change the portfolio to target Asia but not
increase production generally," he said.
OPEC, Russia and other non-members, an alliance known as
OPEC+, agreed in December to reduce supply by 1.2 million bpd
from Jan. 1. OPEC's share of the cut is 800,000 bpd, to be
delivered by 11 members - all except Iran, Libya and Venezuela.
The producers are scheduled to meet in June to decide
whether to extend the deal or adjust it.
In May, the 11 OPEC members bound by the agreement achieved
96 percent of pledged cuts, the survey found, compared to 132
percent in April, due to the rise in production in Saudi Arabia,
and increases in Iraq and Angola.
But a drop in supply in two of the exempt producers more
than offset these gains, the survey found. Iran posted OPEC's
biggest supply drop this month of 400,000 bpd.
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 has nonetheless sent abroad about 400,000 bpd so far
this month, less than half as much as it exported in April.
In Venezuela, supply fell by 50,000 bpd in May due to the
impact of U.S. sanctions on state oil company PDVSA and a
long-term decline in production, according to the survey.
Output also dropped in Nigeria - which last month
overproduced its target by the largest margin - because of a
pipeline shutdown that disrupted exports. Among countries pumping more, Saudi Arabia boosted supply by
200,000 bpd to 10.05 million bpd, the survey found. This is
still below its OPEC quota of 10.311 bpd. Iraq boosted exports and Libya, which is volatile due to
unrest, enjoyed a period of relative stability.
Even so, May's output is the lowest by OPEC since February
2015, 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.