• 3 minutes Looming European Gas Crisis in Winter and North African Factor - a must read by Cyril Widdershoven
  • 7 minutes "Biden Targets Another US Pipeline For Shutdown After 'Begging' Saudis For More Oil" - Zero Hedge Monday Nov 8th
  • 12 minutes "UN-Backed Banker Alliance Announces “Green” Plan to Transform the Global Financial System" by Whitney Webb
  • 5 hours Microbes can provide sustainable hydrocarbons for the petrochemical industry
  • 1 day Hunter Biden Helped China Gain Control of Cobalt Mines in Africa
  • 4 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 2 days Building A $2 Billion Subsea Solar Power Cable From Chile To China
  • 7 hours Is anything ever sold at break-even ? There is a 100% markup on lipstick but Kuwait can't break-even.
  • 9 hours Modest drop in oil price: SPRs vs US crude inventory build
  • 19 hours 2019 - Attack on Saudi Oil Facilities.
  • 23 hours Monday 9/13 - "High Natural Gas Prices Today Will Send U.S. Production Soaring Next Year" by Irina Slav
  • 2 days Ukrainian Maidan after 8 years
  • 3 days Peak oil - demand vs production
  • 3 days "How the CO2 shortage is impacting the food and drink sector" - Specialty Food Magazine
  • 4 days NordStream2
  • 4 days "Gold Set To Soar As Inflation Fears Mount" by Alex Kimani
Why U.S. Steel Output Is On The Rise

Why U.S. Steel Output Is On The Rise

On Monday, President Joe Biden…

5 Trillion Reasons To Be Bullish On Tesla

5 Trillion Reasons To Be Bullish On Tesla

Tesla has established a strong…

OPEC’s New Headache Is Its Third-Biggest Producer

The United Arab Emirates (UAE), currently OPEC’s third-largest producer, breached its OPEC+ oil production quota by a massive 520,000 barrels per day (bpd) in August, data from the International Energy Agency (IEA) showed on Tuesday, suggesting that one of Saudi Arabia’s allies in ‘leading by example’ in the deal could be the cartel’s new compliance headache.

According to IEA’s Oil Market Report, cited by Bloomberg, the UAE pumped 3.11 million bpd in August, up by 240,000 bpd from July and 520,000 bpd above its ceiling of 2.59 million bpd as per the OPEC+ deal.

Using tanker-tracking data, the IEA estimated that OPEC’s third-largest producer exported as much as 2.7 million bpd in August, stockpiled oil at a rate of 115,000 bpd, processed 370,000 bpd at refineries, and blended 100,000 bpd of condensate in its crude streams, Bloomberg reports.  

Earlier this month, the UAE’s Energy Minister Suhail Al Mazrouei himself admitted that the UAE’s production increased to the above-quota 2.693 million bpd in August, but that “measures have been taken to compensate for this temporary increase due to peak summer electricity demand in the UAE, which required an increase in oil production and associated gas.” 

Al Mazrouei also said that Abu Dhabi National Oil Company (ADNOC) had notified its term customers that a 30-percent nomination cut would be applied to all grades in October. 

The UAE was already estimated last week to have exported a lot more crude oil in August as it produced more than its quota under the OPEC+ deal, undermining the oil market’s faith in the group’s unity in the cuts. 

Unlike in previous OPEC+ pacts, non-compliance with the quotas this time requires the culprits to compensate for any above-quota production with more reductions in the following months.

Saudi Arabia, which has been publicly pressing non-compliant OPEC members Iraq and Nigeria to fall in line with their quotas, is likely to be more discreet in its pressure on the UAE, RBC Capital Markets told Bloomberg.   

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage



Leave a comment

Leave a comment

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News