Kingdom hits new oil output record in November

Kingdom hits new oil output record in November
OPEC and non-OPEC oil producers reached a deal on Saturday to curtail output jointly in a drive to prop up prices. (AP)
Updated 12 December 2016

Kingdom hits new oil output record in November

Kingdom hits new oil output record in November

VIENNA: Saudi Arabia pumped record-high amounts of oil in November, amid talks over a global deal to cut production, defying market expectations of lower output on slower domestic demand and refinery maintenance.
Saudi Arabia told the Organization of the Petroleum Exporting Countries it pumped 10.72 million barrels per day last month, an OPEC source said, up from 10.625 million bpd in October.
In July, Saudi Arabia’s production was 10.67 million bpd, the previous high.
Iraq said its November output was 4.8 million bpd, up from 4.776 million bpd in October, another OPEC source said, as oil exports reached a record high of 4.051 million bpd.
Kuwait reported output at 2.9 million bpd in November, lower than its 3 million bpd in October, while the United Arab Emirates kept its output virtually steady at 3.195 million bpd, according to official figures reported to OPEC.
Saudi Arabia has pledged to reduce its output to 10.058 million bpd as part of an OPEC deal reached on Nov. 30 to lower the group’s production to 32.5 million bpd.
The rise in November means Saudi Arabia, OPEC’s biggest producer, will have a bigger task in complying with a plan to cut supply starting in 2017 — its first production-reduction deal since 2008.
Saudi crude exports have been high in recent months, reaching 7.812 million bpd in September, while output has stayed at elevated levels despite the usual seasonal decline in winter when domestic consumption of crude burning for power is less.
A Reuters survey estimated Saudi production in November at 10.45 million bpd due to reduced crude use in power plants for air-conditioning, and lower refining.
A Platts OPEC survey in November estimated Saudi oil production at 10.52 million bpd.
OPEC and non-OPEC producers on Saturday reached their first deal since 2001 to curtail oil output jointly and ease a global glut after more than two years of low prices.
With the deal finally signed after almost a year of arguing within OPEC, the market’s focus will now switch to compliance.
OPEC has a long history of cheating on output quotas. The fact that Nigeria and Libya were exempt from the deal due to production-denting civil strife will further pressure OPEC leader Saudi Arabia to shoulder the bulk of supply reductions.
Energy, Industry and Mineral Resources Minister Khalid Al-Falih said Saudi Arabia may be willing to cut to below 10.058 million bpd next year.