OPEC output steady, Saudi compensates for Iran fall

[BLACKEAGLE]

OPEC’s oil output has remained close to its highest since 2008 in June as extra oil from Saudi Arabia and Iraq has compensated for a drop in Iranian supply to its lowest level in more than two decades, a Reuters survey found on Friday.

U.S. and European sanctions have pushed Iran from second-largest producer in the Organization of the Petroleum Exporting Countries to rank third behind Iraq.

The survey added to evidence that Saudi Arabia is showing no sign of changing its policy of high oil output to support the world economy, despite a fall in crude prices in June below $90 a barrel from near $130 in March.

“I don’t see Saudi Arabia cutting production by very much until the Iranian embargo situation is clarified and because of concern about global economic growth,” said Paul Tossetti, senior energy adviser at PFC Energy.

Supply from the 12-member OPEC has averaged 31.63 million bpd as the end of the month approaches, down from a revised 31.70 million bpd in May, the survey of sources at oil companies, OPEC officials and analysts found.

Production is down only slightly from its highest in four years. OPEC pumped 31.75 million bpd in April, the highest since September 2008, based on Reuters surveys.

OPEC is pumping 1.63 million bpd more than its official ceiling of 30 million barrels per day (bpd), despite agreeing to stick to that target at a June 14 meeting. With Iranian output falling, other members are seen as unlikely to implement large cutbacks.

“Ultimately, as demand seasonally rises in the summer and increasing volumes of Iranian oil come under embargo, the likelihood is that OPEC will only need to marginally adjust production lower,” said Harry Tchilinguirian, head of commodity markets strategy at BNP Paribas in London.

Oil was up more than $4 a barrel at $95.41 on Friday after European leaders took steps seen as easing the region’s debt crisis.

Iranian drop


The biggest drop in supplies came from Iran, whose crude is subject to a European Union embargo starting on July 1 that also bars EU insurance firms from covering Iran’s exports.

Iran’s supply slipped by 180,000 bpd to 2.95 million bpd in June, according to the survey. That would be its lowest output since it produced 2.81 million bpd in 1989, according to figures from the U.S. Energy Information Administration.

Earlier this week, Iran acknowledged for the first time that exports had fallen significantly. According to sources outside Iran, its exports posted the first sizeable decline in March in response to the looming EU embargo.

Europe and the United States are trying to squeeze the revenues Iran makes from its oil exports to force it to halt a nuclear program they fear will be used to make weapons, but which Tehran says is for power generation.

Exports also declined in Angola due to shipping schedules. Loading programs suggest output will slip further in July before rebounding in August.

Among the countries boosting supplies, Libya’s production continued to recover from a virtual shutdown during the 2011 civil war, rising by 60,000 bpd to 1.48 million bpd, within a whisker of the pre-war rate.

The biggest increase in OPEC supply has come from Saudi Arabia, its top producer. There was no sign of its Gulf allies Kuwait and the United Arab Emirates throttling back supplies.

Saudi Arabia has pumped an extra 100,000 bpd, the survey found, taking output to 10.10 million bpd, the highest in decades. Saudi supply in May was revised 100,000 bpd lower.

Supply also rose in Iraq as increased exports from the country’s south offset lower shipments from the north, making it OPEC’s second-largest producer, ahead of Iran. According to the EIA’s annual data, that has not happened since 1989.

Iraq’s oil expansion, still in its early stages, may fuel OPEC rivalries as it draws closer to Saudi production and sanctions undermine Tehran’s role as an oil power. In the 1980s, Baghdad and Tehran sparred over OPEC quotas.

“The wealth for Iraq, the oil, is going to create more competition - definitely with the Saudis,” Ali al-Dabbagh, Iraq’s government spokesman, said last week at an energy conference in London. “The Saudis want to keep leading this market - but a player is coming.”

 

[Serpentine]

The less we are dependant on oil,better it gets.
It maybe hard at first,but lets face it.We should start from a point and this is it.
Besides,with current production rate,Saudi oil will run out about 50 years sooner than Iran,not to forget that SA doesn't have significant gas reserves.

 

[kollang]

thanks Saudi regime
you:
1-make us more strong.
2-show your weak and jackal face.

 

[BATMAN]

Iran is only exporting/importing to friends of US and US it self.

Pakistan is not on the list of 20 countries which have been granted an exemption by the USA for dealings with Iran.

thanks Saudi regime
you:
1-make us more strong.
2-show your weak and jackal face.

I'm sorry, but your leaders have repeatedly threatened to destroy Saudi oil refineries at there eastern coast and choking of gulf.

You shall know oil production is regulated by OPEC with set of rules and than after it is race among member countries.

 

[Serpentine]

I'm sorry, but your leaders have repeatedly threatened to destroy Saudi oil refineries at there eastern coast and choking of gulf.

You shall know oil production is regulated by OPEC with set of rules and than after it is race among member countries.

Iranian 'leaders' said that?Can you bring a proof for that?
Maybe there are some low level officials who have said such thing,but none of the leaders has ever said such thing.Please don't fall in propaganda again.

And answer me,didn't Saudi Arabian king said that Iran and Israel are two countries who should not exist?Didn't he say Iran is a snake?Please stop supporting something blindly.

 

[kollang]

batman
havnt you been in Iran?ya?
havnt you eat our "NOON O NAMAK".
im realy sorry for your personality

 

[Al Bhatti]

Self delete

 

[Abii]

batman
havnt you been in Iran?ya?
havnt you eat our "NOON O NAMAK".
im realy sorry for your personality

The guy is lying man, don't believe him. He says he's been to Saudi Arabia, Iran (he claims to have crossed to bridge that's on Urumia lake even), every khalijee country etc...

I love to know his job and how he can afford to go on all these trips. The guy is also a bit of a radical, not enough to call him a wahabi, but he's border line. A lot of the things he says are out of saudi text books.

The less we are dependant on oil,better it gets.
It maybe hard at first,but lets face it.We should start from a point and this is it.
Besides,with current production rate,Saudi oil will run out about 50 years sooner than Iran,not to forget that SA doesn't have significant gas reserves.

And also Iraq
both Iran and Iraq will have oil for many decades after the Saudis. The Saudis have practically produced at three-four times the rate of Iran for 3 decades. I don't care how much more oil they have, a simple calculation will show that Iran and Iraq will have oil for many decades after saudi.

Plus we're the second largest gas holders on the planet so we can make money on that too.

 

[ihealugo]

and we have 25% of world helium ....

 

[SamranAli]

its only bad fos KSA...

 

[raptor22]

one of my dreams is to see our economy without oil money ... as Era_923 said at first it seems hard but we'll make it ..

 

[SOHEIL]

thanks KSA

 

[ihealugo]

we are the men of hard times !

 

[Bratva]

we are the men of hard times !

All these hardships are brought upon you because of your own actions. I really wish, All these stubbornness shown by Iran, if they had not shown, They would have developed a Iran so powerful in every sector because of the abundance of resources available to you that you would have left Turkey behind. Without all these sanctions, Iraninan Airforce must have seen a tremendous uplift, Iranian navy would have seen new Russian and chinese warships and submarines. Iranian Army would have become the most advance army of the region but somethings can be wished.

 

[Abii]

All these hardships are brought upon you because of your own actions. I really wish, All these stubbornness shown by Iran, if they had not shown, They would have developed a Iran so powerful in every sector because of the abundance of resources available to you that you would have left Turkey behind. Without all these sanctions, Iraninan Airforce must have seen a tremendous uplift, Iranian navy would have seen new Russian and chinese warships and submarines. Iranian Army would have become the most advance army of the region but somethings can be wished.

lmao thinking like a true third worlder

So we should give up our astronomical scientific growth, the fantastic industrial growth that we've achieved over the past three decades and the domestic military industry for a few foreign jets, tanks and rifles????? What kind of idiotic logic is that? The oil is under the ground and so is the natural gas, it aint going anywhere. When the sanctions are lifted and the minute we increase our petro/gas production, we can erase 3-4 decades of sanctions within a few short years. But the scientific growth, industrialization of the nation and the self sufficiency that we've achieved couldn't have been done had we stayed on the previous path (buying everything from experts, minds and hardware with petro dollars). Today we have opinions of our own. We can do what we want and we're not slaves of foreigners anymore. This has come at a price, but the reward in the future will be a million times greater. In all honesty the past 3 decades haven't been that bad. Today we have a higher Human Development Index than Turkey, even with all these hardships.