Tuesday 24 October 2017

UAE Aug oil output surges to 2.6m bpd

Dubai, September 11, 2011

The United Arab Emirates produced 2.6 million barrels per day (bpd) of oil in August, up from around 2.5 million bpd in July, a Gulf oil source told Reuters on Sunday.

Saudi Arabia and its Gulf allies, including the UAE, have raised their output since failing to convince other Opec members in early June to agree a formal increase to help compensate for the shutdown of Libyan oil fields and meet demand.

'Production for August was 2.6 million, Libya is still not producing and the Gulf countries are still stepping in,' the source told Reuters.

Libya's interim oil minister Ali Tarhouni said on Saturday the North African country should start producing oil again within four days but that it would take a year to return to pre-war levels.

Gulf producers may reduce output again once Libyan exports resume, but strong demand in the big Gulf oil export markets of Asia could keep output at current levels, another Opec delegate said.

'Countries who have increased production to meet demand will reduce to cater for the entrance of Libyan oil,' the delegate said.

'(But) Libyan oil goes to Europe, while oil from the Gulf goes to Asia.'

After a Gulf producer push to raise Opec production levels was rejected on June 8 by other members, Saudi Arabia increased its output by around 918,000 bpd to 9.813 million bpd in June, according to official data from the Joint Data Initiative (JODI)

A Reuters survey estimates the world's biggest crude oil exporter produced around 9.9 million bpd in August, but Saudi OPEC officials were unavailable to comment.

Kuwait produced more than 2.8 million bpd throughout August, according to oil minister Mohammad al-Busairi, up from 2.55 million bpd in May.-Reuters

Tags: UAE | Opec | surge | Oil output | Libyan exports |

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