Monday 18 June 2018

Opec crude production plunges in June

Vienna, June 29, 2013

Opec crude output has fallen in June due to disruptions in Libya and Nigeria, a Reuters survey found yesterday, inadvertently bringing supply closer to the organisation's target.

Supply from Opec has averaged 30.38 million barrels per day (bpd), down from a revised 30.46 million bpd in May, the survey of shipping data and sources at oil firms, Opec and consultants found.

The survey shows violence is making African producers Opec's weakest supply link and the ambitious plans of Iraq, its second-largest producer, to expand exports are facing headwinds.

In June, largely involuntary curbs by smaller Opec producers have outweighed extra crude from its top exporter, Saudi Arabia, which has ramped up supply in response to a seasonally higher requirement for crude in domestic power plants.

"It's Nigeria, Libya and Angola mainly," said a participant in the survey. "This decline should support prices and you could make a case for it continuing for the next few months."

Opec's June output is the lowest since March 2013, when the group pumped 30.18m bpd, according to Reuters surveys, and leaves supply a mere 380,000 bpd above its output target of 30 million bpd.

With oil just above Saudi Arabia's preferred level of $100, Opec at a meeting on May 31 in Vienna agreed to maintain the 30 million bpd target.

The most notable drop in Opec output has come from Libya. Protests at oilfields and terminals led to supply falling below one million bpd earlier in June.-Reuters  

Tags: Saudi | Oil | Opec | libya | production |

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