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OPEC posts first 2019 oil-output rise despite Saudi cuts - Reuters survey

Published 30/08/2019, 16:14
© Reuters.  OPEC posts first 2019 oil-output rise despite Saudi cuts - Reuters survey
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* OPEC oil output rises by 80,000 bpd in August

* Nigeria, Iraq boost output, Gulf producers keep output

* New accord on supply cuts started in January

* For output by country, compliance, click on By Alex Lawler

LONDON, Aug 30 (Reuters) - OPEC oil output has risen in

August for the first month this year as higher supply from Iraq

and Nigeria outweighed restraint by top exporter Saudi Arabia

and losses caused by U.S. sanctions on Iran, a Reuters survey

found.

The 14-member Organization of the Petroleum Exporting

Countries has pumped 29.61 million barrels per day (bpd) this

month, the survey showed, up 80,000 bpd from July's revised

figure which was the lowest OPEC total since 2014.

The survey indicates Saudi Arabia is not deviating from its

plan of restraining output by more than called for by an

OPEC-led supply deal to support the market. Despite calls this

year from U.S. President Donald Trump on OPEC to raise output,

the producers renewed the supply pact in July.

OPEC's supply curbs should eventually start to support the

price of crude LCOc1 , which has fallen from a 2019 high above

$75 a barrel in April to $61 on Friday on concern about slowing

oil demand and economic growth, analysts at Commerzbank (DE:CBKG) said.

"Even the moderate demand growth that can be expected is

likely – given the considerable production discipline shown by

OPEC – to result in an ongoing tightening of supply and to

support rising prices," Commerzbank analyst Eugen Weinberg said.

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 and exempting Iran, Libya and Venezuela.

In August, the 11 OPEC members bound by the agreement, which

now runs until March 2020, achieved 136% of pledged cuts, down

from 150% in July, the survey found. Two of the three exempt

producers pumped less oil.

The biggest supply boost of 80,000 bpd came from Nigeria,

Africa's largest exporter, which is seeking a higher OPEC quota

and in August continued to produce above its target by the

largest margin.

The second-largest rise of 60,000 bpd came from Iraq, which

boosted exports from both its northern and southern outlets

according to the survey.

Smaller increases came from Libya, where the country's

largest oilfield, El Sharara, resumed output on or around Aug. 8

following an outage. Kuwaiti output climbed slightly while

remaining below its quota, the survey found.

Saudi Arabia, which in July cut supply even further below

its OPEC target in a bid to reduce inventories, has kept output

at a similar rate in August. The survey pegged Saudi production

at 9.63 million bpd, down from its quota of 10.311 bpd.

Fellow Gulf producer the United Arab Emirates also kept

output flat and below its target.

Among countries with lower output, Iran posted the largest

decline of 50,000 bpd.

The United States reimposed sanctions on Iran in November

after pulling out of a 2015 nuclear accord between Tehran and

six world powers. In a bid to cut Iran's sales to zero,

Washington in May ended sanctions waivers for importers of

Iranian oil.

In Venezuela, supply fell slightly due to the impact of U.S.

sanctions on state oil company PDVSA and a long-term decline in

production, according to the survey.

July's output was the lowest by OPEC since March 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.

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