Saudi Arabia failed to compensate for Iranian oil exports
09:31 - 01/06/2019
Information / Baghdad ..
A Reuters survey found that Saudi Arabia raised production in May, but not enough to compensate for the drop in Iranian exports after the United States tightened sanctions on Tehran.
The survey showed OPEC countries produced 30.17 million bpd in May, down 60,000 bpd from April.May production was the lowest level for OPEC since 2015.
The survey indicates that despite Saudi Arabia's increased production, it is still producing less voluntarily than an OPEC-led production agreement is in place this year.
"We see a drop in OPEC supply in May to its lowest level in many years. There is not a lot of big increases this month, the production of a lot of countries decreased.
Despite falling supplies, crude oil fell from a six-month high above $ 75 a barrel in April to below $ 68 on Thursday, under pressure from concerns over the economic impact of the US-China trade dispute.
"Most countries have curbed production in May, although they probably sought to boost sales in the fastest-growing Asian market," an OPEC delegate said, noting that "producers may change their supply portfolio to target Asia without increasing production in general."
The Opec Plus alliance, which includes OPEC members, Russia and other independent producers, agreed in December to cut output by 1.2 million bpd as of January 1.
Opec's quota of 800,000 barrels per day (bpd) is borne by 11 member states, with the exception ofIran,
Libya and Venezuela.
Producers are scheduled to meet in June to decide whether to extend or amend the agreement.
The survey found that in May, 11 Opec countries committed to the agreement achieved 96 per cent of targeted cuts, compared with 132 per cent in April, as a result of rising Saudi production and increases in the supply of Iraq and
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