Latest news with #productionhike
Zawya
08-08-2025
- Business
- Zawya
OPEC oil output rises in July led by UAE and Saudi, survey finds
OPEC's oil output rose further in July after an OPEC+ agreement to raise production, a Reuters survey found on Friday, although the hike was limited by Iraq making additional cuts and by drone attacks on Kurdish oilfields. The Organization of the Petroleum Exporting Countries pumped 27.38 million barrels per day last month, up 270,000 bpd from June's revised total, the survey showed, with the United Arab Emirates and Saudi Arabia making the largest increases. OPEC+, which comprises OPEC and its allies including Russia, is accelerating its plan to unwind its most recent layer of output cuts. At the same time, some members are required to make extra cuts to compensate for earlier overproduction, in theory limiting the impact of the hikes. Under an agreement by eight OPEC+ members covering July output, the five of them that are OPEC members - Algeria, Iraq, Kuwait, Saudi Arabia and the UAE - were to raise output by 310,000 bpd before the effect of compensation cuts totalling 175,000 bpd for Iraq, Kuwait and the UAE. According to the survey, the actual increase by the five was 150,000 bpd. Saudi supply for June was revised up by 50,000 bpd after the country reported in OPEC's July monthly report that it supplied 9.36 million bpd in June. Iraq, which is under pressure to boost compliance with OPEC+ quotas, lowered output because of compensation cuts and due to drone attacks on oilfields in Iraqi Kurdistan. The UAE raised output by about 100,000 bpd, but still pumped below its OPEC+ quota. There is a wide range of estimates of output in Iraq and the UAE with many outside sources putting the countries' output higher than the countries themselves. While the Reuters survey and data provided by OPEC's secondary sources show they are pumping close to the quotas, other estimates, such as those of the International Energy Agency, say they are pumping significantly more. The Reuters survey aims to track supply to the market and is based on flows data from financial group LSEG, information from other companies that track flows such as Kpler, and information provided by sources at oil companies, OPEC and consultants. (Additional reporting by Ahmad Ghaddar. Editing by Mark Potter)
Reuters
08-08-2025
- Business
- Reuters
OPEC oil output rises in July led by UAE and Saudi, survey finds
LONDON, Aug 8 (Reuters) - OPEC's oil output rose further in July after an OPEC+ agreement to raise production, a Reuters survey found on Friday, although the hike was limited by Iraq making additional cuts and by drone attacks on Kurdish oilfields. The Organization of the Petroleum Exporting Countries pumped 27.38 million barrels per day last month, up 270,000 bpd from June's revised total, the survey showed, with the United Arab Emirates and Saudi Arabia making the largest increases. OPEC+, which comprises OPEC and its allies including Russia, is accelerating its plan to unwind its most recent layer of output cuts. At the same time, some members are required to make extra cuts to compensate for earlier overproduction, in theory limiting the impact of the hikes. Under an agreement by eight OPEC+ members covering July output, the five of them that are OPEC members - Algeria, Iraq, Kuwait, Saudi Arabia and the UAE - were to raise output by 310,000 bpd before the effect of compensation cuts totalling 175,000 bpd for Iraq, Kuwait and the UAE. According to the survey, the actual increase by the five was 150,000 bpd. Saudi supply for June was revised up by 50,000 bpd after the country reported in OPEC's July monthly report that it supplied 9.36 million bpd in June. Iraq, which is under pressure to boost compliance with OPEC+ quotas, lowered output because of compensation cuts and due to drone attacks on oilfields in Iraqi Kurdistan. The UAE raised output by about 100,000 bpd, but still pumped below its OPEC+ quota. There is a wide range of estimates of output in Iraq and the UAE with many outside sources putting the countries' output higher than the countries themselves. While the Reuters survey and data provided by OPEC's secondary sources show they are pumping close to the quotas, other estimates, such as those of the International Energy Agency, say they are pumping significantly more. The Reuters survey aims to track supply to the market and is based on flows data from financial group LSEG, information from other companies that track flows such as Kpler, and information provided by sources at oil companies, OPEC and consultants.
Wall Street Journal
07-07-2025
- Business
- Wall Street Journal
Oil Slips on Larger OPEC+ Output Hike
Oil prices slipped after the Organization of the Petroleum Exporting Countries and its allies agreed to a larger-than-expected production hike for the fourth straight month, fueling concerns about a global supply glut at a time when the demand outlook looks uncertain. Eight OPEC+ countries said they will increase production by 548,000 barrels a day in August–the equivalent of four monthly increments and above the 411,000 barrels a day forecast by analysts.
Forbes
06-07-2025
- Business
- Forbes
Oil Market Heading For Surplus In 2025 On Latest OPEC+ Output Hike
An oil storage facility in Groot-Ammers, The Netherlands. The global oil market is likely heading for a surplus this year following a higher than expected production hike by OPEC+ over the weekend. At their meeting on Saturday, eight members of OPEC+, a select group of Russia-led oil producers and the Organization of the Petroleum Exporting Countries (OPEC) spearheaded by Saudi Arabia, opted to raise collective production levels for August by another 548,000 barrels per day. Producers Saudi Arabia, Russia, Iraq, United Arab Emirates, Kuwait, Kazakhstan, Algeria, and Oman cited 'healthy oil market fundamentals and steady global economic outlook' as the reasons behind the move indicating their belief that the global oil market can absorb the additional supply. The move, which took the market by surprise, came after three consecutive output hikes of 411,000 bpd announced by OPEC+ in recent months. The series of hikes are part of the producers' group's attempt to unwind 2.2 million bpd of previously agreed cuts since 2022. The latest hike implies 1.92 million bpd or over 87% of those cuts have now been unwound. As in previous instances, OPEC+ said: 'The gradual increases may be paused or reversed subject to evolving market conditions. This flexibility will allow the group to continue to support oil market stability.' An Oil Market Surplus Is Imminent For all intents and purposes, the volume of the hike is an oversized one demonstrative of OPEC's intention of putting more barrels on the market for a greater market share. The hope is that summer demand in the Northern hemisphere would absorb the additional barrels. However, the only issue that non-OPEC production is up at a record breaking pace led by the U.S., currently the world's largest oil producer. According to the Energy Information Administration - statistical arm of the U.S. Department of Energy - in April, the nation's crude production came in at an all-time high of 13.47 million bpd, breaking a previous record of 13.45 million bpd set in October 2024. The ranks of non-OPEC producers are also being boosted by higher output from Brazil, Canada, Guyana and Norway. Collectively, non-OPEC production growth is likely to rise by 1.4 million bpd, according to the International Energy Agency. Notwithstanding any additional OPEC+ barrels, such levels of non-OPEC growth alone are more than sufficient to account for global demand growth projections for this year that have been put forward by various forecasters. These range from 0.72 million bpd to 1.3 million bpd, with IEA and OPEC being at the opposite ends of that range. With additional barrels flowing in from all corners, there are fears the oil market may end up with a surplus of as much as 500,000 to 600,000 bpd, perhaps even more. As it becomes pretty apparent that OPEC+ now wants to take the fight to non-OPEC producers in a bid for market share, oil prices will likely head lower. Back in May, prior to the escalation of tensions in the Middle East the following month, Goldman Sachs was predicting sub-$60 average oil prices - $56 for Brent and $52 for U.S. benchmark West Texas Intermediate - as they head lower in the second half of the year. It was part of a rising number of its peers lining up to trim their price predictions for 2025-26 down to the $60s or below. Barring a major geopolitical escalation or macroeconomic event, OPEC+ has brought that world a lot closer with its latest hike.
CNA
01-07-2025
- Business
- CNA
Oil steady ahead of OPEC+ decision
LONDON :Oil prices were steady on Tuesday as investors assessed expectations that OPEC+ will announce an output hike for August at an upcoming meeting as well as trade negotiations. Brent crude was up 5 cents to $66.79 a barrel at 0901 GMT, while U.S. West Texas Intermediate crude was up 4 cents to $65.15 a barrel. The market's main focus is the 411,000-barrel-per-day production hike that OPEC+ is expected to announce for August in a meeting on July 6, said Saxo Bank analyst Ole Hansen, adding that this was partially offset by potential trade deals improving the demand outlook. "The market is now concerned that the OPEC+ alliance will continue with its accelerated rate of output increases," ANZ senior commodity strategist Daniel Hynes said in a note. Four OPEC+ sources told Reuters last week that the group - comprising OPEC and allies including Russia - plans to raise output by 411,000 bpd in August, following similar hikes in May, June, and July. If approved, this would bring OPEC+'s total supply increase for the year to 1.78 million bpd, equivalent to more than 1.5 per cent of global oil demand. Investors are also watching trade negotiations ahead of U.S. President Donald Trump's tariff deadline of July 9. U.S. Treasury Secretary Scott Bessent warned that countries could be notified of sharply higher tariffs despite good-faith negotiations as a July 9 deadline approaches, when tariff rates are scheduled to revert from a temporary 10 per cent level to Trump's suspended rates of 11 per cent to 50 per cent announced on April 2. Morgan Stanley expects Brent futures to retrace to around $60 by early next year, with the market being well supplied and geopolitical risk abating following the Israel-Iran de-escalation. It expects an oversupply of 1.3 million bpd in 2026. A 12-day war that started with Israel targeting Iran's nuclear facilities on June 13 pushed up Brent prices. They surged above $80 a barrel after the U.S. bombed Iran's nuclear facilities and then slumped to $67 after Trump announced an Iran-Israel ceasefire.
