2020-10-06 15:35:00
UAE OIL PRODUCTION DOWN
PLATTS - 05 Oct 2020 - The UAE lowered its September crude output by 8% on the month to 2.476 million b/d, achieving 116% compliance with its OPEC+ quota as the producer compensated for overproduction in August, a source familiar with the matter told S&P Global Platts Oct. 5.
The OPEC producer pumped 2.693 million b/d in August, 103,000 b/d above its quota of 2.590 million b/d under the OPEC + supply accord, and a rise of 293,000 b/d from what the country reported in July, when its cap was 2.446 million b/d.
The UAE pumped more oil in August as electricity demand powered by natural gas -- produced in concert with crude -- surged that month, energy minister Suhail al-Mazrouei tweeted on Sept. 1, vowing to make up for overproduction.
The UAE, which has typically demonstrated strong compliance with its quota, boosted its output to 2.74 million b/d in August, according to the S&P Global Platts latest OPEC+ survey, far in excess of its cap.
State-owned Abu Dhabi National Oil Co., which produces the vast majority of the country's crude, confirmed Sept. 16 that it would reduce by 25% nominations of all four crudes grades in November, following a 30% cut in October's crude allocations.
Compensation cuts
OPEC+ members will have until December 31 to make good on their required crude production cuts, with Saudi Arabia and other compliance sticklers conceding that the previous end-September deadline was infeasible, according to a draft agreement seen by S&P Global Platts.
Under the OPEC+ deal, any country that overproduced their quotas must make extra "compensation cuts" of an equivalent volume in subsequent months.
In all, countries that exceeded their quotas from May through August have a cumulative 2.375 million b/d of compensation cuts due, according to an analysis prepared for the OPEC + Joint Ministerial Monitoring Committee, which met virtually Sept. 17.
The committee will meet next on Oct. 19.
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Earlier:
2020, October, 1, 13:40:00
OPEC+ CUTTING COMPENSATION 2.375 MBD
OPEC and 10 allies, including Russia, are in the midst of a historic production cut accord aimed at helping the oil market recover from the COVID-19 pandemic. The curbs initially started at 9.7 million b/d for May-July, before tapering to 7.7 million b/d from August through the end of the year.
2020, September, 25, 13:00:00
OPEC+ IRAQ REDUCING
OPEC’s second-biggest producer, Iraq has failed in the past to fully comply with OPEC+ oil output reductions,
2020, September, 24, 12:25:00
UAE RENEWABLES + NUCLEAR
UAE strategy targets an energy mix of 44% renewables, 38% gas, 12% clean coal, and 6% nuclear.
2020, September, 24, 12:20:00
OPEC+ REBALANCING: 2021
The OPEC+ agreement, along with declines in production elsewhere, including the United States, brought global supply lower than the level of global demand for the first time since mid-2019.
2020, September, 18, 12:25:00
OPEC RESTORES BALANCE
Energy minister Alexander Novak said Russia "greatly values cooperation with OPEC," and that while overall compliance with the cuts is high, "I would like to urge everyone to view this very seriously and stick to the high level of conformity we were able to achieve."
2020, September, 11, 12:20:00
OPEC+ PRODUCTION CUT
The OPEC+ agreement called for a decrease in crude oil output by a combined 9.7 million b/d in May and June, a combined decrease of 9.6 million b/d in July 2020, and a combined decrease of 7.7 million b/d in August
2020, September, 8, 12:45:00
OPEC+ STABILIZES MARKET
Saudi Arabia and Russia agreed to further closely coordinate their work on production cuts, trade and investments.
