OPEC struggles to deliver pledged oil output boost
The Organization of the Petroleum Exporting Countries (OPEC) is struggling to add barrels to the market after agreeing in June to increase its oil output.
According to Reuters, the non-OPEC nations cooperating with OPEC pumped an extra 296,000 bpd since May, an OPEC document showed. Russia increased output by 389,000 bpd, although Kazakhstan, Mexico and Malaysia posted declines.
The Organization of the Petroleum Exporting Countries and allies agreed in June to boost supply as U.S. President Donald Trump urged producers to offset losses caused by sanctions on Iran and to dampen rising prices.
Saudi Energy Minister Khalid al-Falih said OPEC and non-OPEC producers would pump roughly an extra 1 million barrels per day (bpd) following the June agreement.
OPEC says it is on course to do so, although it hasn't given a timeframe.
"It is a work in progress," OPEC Secretary General Mohammad Barkindo said earlier this week.
The internal document prepared by OPEC's Vienna headquarters for a technical panel meeting on Friday showed that OPEC members, excluding Nigeria, Libya and Congo pumped an extra 428,000 bpd in September compared to May.
Iranian Petroleum Minister Bijan Namdar Zangeneh stressed on Tuesday that if US lifts sanctions against Iran, then oil prices will decrease and the market will not be unstable anymore.
(US President Donald) Trump thinks that he can reduce oil prices by bullying others into submission,' Zangeneh said on the sidelines of the 4th Iranian Petroleum and Energy Club Congress and Exhibition in Tehran. US is responsible for instability in the oil market, he said.
Despite US pressure, Iranian crude oil and condensate exports averaged 2.20 million barrels per day (Mmbpd) in the first two weeks of October, an increase of 195,618 Bpd over the full month of September, Kallanish Energy reports.
According to data released by online monitoring service TankerTrackers.com, the volume is based on the first 13 days of the month, due to delays caused by AIS manipulation during maritime transportation.In September, an average of 2 Mmbpd was tracked by the service.
In the period of Oct. 1-13, the Opec member exported 28.64 million barrels (Mmbbl), according to TankerTrackers.com. Considering Brent oil prices at an average of $81.22/Bbl, the country has generated some $2.50 billion in revenue in just two weeks.
Among other OPEC members, production fell by 189,000 bpd in Venezuela and by 17,000 bpd in Angola.
The non-OPEC nations cooperating with OPEC pumped an extra 296,000 bpd since May, the OPEC document showed. Russia increased output by 389,000 bpd, although Kazakhstan, Mexico and Malaysia posted declines.
Nigeria, Libya and Congo are not included in OPEC's supply-limiting pact. Including them brings the increase in OPEC's output in September to 628,000 bpd.
The OPEC and non-OPEC technical panel called the Joint Technical Committee reviews producers' compliance with their oil supply pledges.
Top exporter Saudi Arabia pumped most of the extra oil, raising output by 524,000 bpd in September compared to May, the document showed. Other increases came from Iraq, Kuwait and the United Arab Emirates.
The International Energy Agency (IEA) warned against the significant impact of a US plan to impose crude oil sanctions against Iran, could challenge the world oil supply.