OPEC’s crude oil exports last month gained 761,000 bpd from May to hit an average of 23.7 million bpd, energy data provider Kpler reports. In May, the cartel’s exports sank below 22 million bpd.
The increase came thanks to stronger exports from Saudi Arabia, the UAE, and Iraq, with Saudi Arabia raising daily loadings by some 135,000 bpd in June. Iraq’s loadings rose by more than 100,000 bpd last month, but the UAE marked the strongest increase at over 400,000 bpd.
Iran suffered another huge decline in exports—by 469,000 bpd to just 515,000 bpd in June with Kpler noting that most of this was loaded and then left to float in the Persian Gulf.
Interestingly enough, Venezuela and Libya both booked increases in their June loadings despite their political and security problems. Venezuela’s loadings rose from 883,000 bpd in May to 968,000 bpd in June, and Libya exported 1.1 million bpd in June, up from 974,000 bpd in May.
The cartel’s grand total was 3.577 million bpd lower than the loadings for June last year thanks to the twin effect of the OPEC+ production cuts and involuntary production declines in Venezuela and Iran because of sanctions.
Earlier this week, OPEC and its external partners agreed to extend the cuts unto 2020, to end-March. The cuts total 1.2 million bpd, of which 800,000 bpd will be cut by OPEC members and the rest by Russia, Kazakhstan and several smaller non-OPEC producers. OPEC’s compliance level was in excess of 100 percent, at 168 percent for the first half of the year, but that was largely on the back of unavoidable production declines in Venezuela and Iran.
Normally, this should have pushed prices significantly higher. However, amid deepening concern about global economic growth and consequently oil demand, the market shrugged off the OPEC news with Brent and WTI both down after a brief jump immediately after the OPEC announcement.
By Irina Slav for Oilprice.com
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