Breaking News
Investing Pro 0
Cyber Monday Extended SALE: Up to 60% OFF InvestingPro+ CLAIM OFFER

OPEC oil output near record high in April as Iran, Iraq growth offsets outages: Reuters survey

Commodities Apr 29, 2016 09:38AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. OPEC logo is pictured at its headquarters in Vienna
 
CBKG
+0.92%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
SLB
-2.67%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
LCO
-1.39%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 

By Alex Lawler

LONDON (Reuters) - OPEC's oil output rose in April to close to the highest level in recent history, a Reuters survey found on Friday, as production increases led by Iran and Iraq more than offset a strike in Kuwait and other outages.

Top exporter Saudi Arabia, however, made no major change to output, the survey found, despite the kingdom hinting it could boost supply after OPEC and non-member nations failed to agree to freeze output at a meeting on April 17.

Oil (LCOc1) has rebounded more than 75 percent from a 12-year low in January to reach $48 a barrel, helped by the freeze initiative and signs that lower prices are starting to curb higher-cost supply, despite high inventories and other persistent reminders of a glut.

"The market is massively oversupplied," said Eugen Weinberg, analyst at Commerzbank (DE:CBKG) in Frankfurt. "This rally doesn't have strong legs."

Supply from the Organization of the Petroleum Exporting Countries rose to 32.64 million barrels per day (bpd) this month, from 32.47 million bpd in March, according to the survey, based on shipping data and information from sources at oil companies, OPEC and consultants.

That almost matches January's 32.65 million bpd, when Indonesia's return as an OPEC member boosted production and output from the other 12 members was the highest in Reuters survey records, starting in 1997.

OPEC output has surged since it abandoned in 2014 its historic role of cutting supply to prop up prices, led by higher supply from Saudi Arabia and Iraq.

Iran saw the sharpest increase in production in April after Western sanctions were lifted in January. Tehran, which wants to recover the market share it lost, has refused to limit its supply until it reaches pre-sanctions output.

At 3.40 million bpd, Iranian output is within sight of the 3.50 million bpd it pumped at the end of 2011 before sanctions were tightened, according to Reuters surveys. However, some of the crude may have come from storage, giving a temporary boost to April supply, sources said.

Iraq, which saw the fastest growth in production in OPEC in 2015, also raised output. Southern exports have risen to what may be a new record in April - depending on whether tankers loading at the end of the month are treated as April or May. Shipments of Kurdish crude from the north also rose.

OPEC's third-largest supply increase in April came from the United Arab Emirates, following the end of maintenance work on oilfields that produce Murban crude.

Of the countries that reduced output, the largest decline was in Kuwait due to a three-day workers' strike which temporarily more than halved oil output and curbed refinery operations.

Nigerian output fell due to the continued lack of Forcados crude exports and a brief disruption to shipments of another stream, Brass River. Repairs on a pipeline to the Forcados terminal will take until June, the government said.

Loading problems, power failures and other problems dented Venezuela's supply by an estimated 40,000 bpd. Oil services firm Schlumberger (N:SLB) is cutting activity in the cash-strapped nation, posing a threat to future output.

Saudi Arabia kept output steady compared with March, sources in the survey said, even though use in domestic power plants is rising. Saudi production was estimated at 10.15 million bpd versus 10.18 million in March.

"Exports are lower," said a source who monitors Saudi output. "The month is not over yet so let's wait for the final number, but that's what I am seeing here and now."

OPEC meets on June 2 in Vienna and may discuss the freeze initiative again. However, OPEC officials have been encouraged by the price recovery, which may take the urgency out of a renewed attempt to forge a deal.

OPEC oil output near record high in April as Iran, Iraq growth offsets outages: Reuters survey
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email