OPEC oil output in May rises less than planned, Reuters survey finds
LONDON, June 9 (Reuters) - OPEC oil output rose in May by less than the volume planned, a Reuters survey found, as Iraq made further cuts to compensate for earlier pumping above target and Saudi Arabia and the United Arab Emirates made smaller hikes than allowed.
The Organization of the Petroleum Exporting Countries pumped 26.75 million barrels per day last month, up 150,000 bpd from April's total, the survey showed on Monday, with Saudi Arabia making the largest increase.
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 May output, the five of them that are OPEC members - Algeria, Iraq, Kuwait, Saudi Arabia and the United Arab Emirates - were to raise output by 310,000 bpd.
According to the survey, the actual increase by the five was 180,000 bpd, as compensation cuts by Iraq and lower exports by Saudi Arabia limited the increase. The biggest hike of 130,000 bpd came from Saudi Arabia, the survey found.
Iraq, which is under pressure to boost compliance with OPEC+ output quotas, curbed output, the survey found, to meet its commitment for compensation cuts in May.
The United Arab Emirates also pumped below its OPEC+ quota in May, the survey found, to reflect the country's relatively low commitments for compensation cuts, a source with knowledge of the issue said.
There is a wide range of estimates of output in Iraq and the UAE with many outside sources putting the countries' output higher the the countries themselves.
While the Reuters survey and April 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.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Independent
an hour ago
- The Independent
Whitehall isn't working – here's how the PM can fix it
It never rains but it pours for Keir Starmer. He is fighting to stop the Iran crisis wrecking his one success as prime minister – a solid performance on foreign affairs in which he somehow maintains a productive relationship with Donald Trump. Insiders tell me Starmer's efforts are aimed at persuading Iran to enter meaningful talks on its nuclear programme and then convincing a highly sceptical US president that Iran is serious about negotiations. But if Trump goes ahead with his threat to bomb Iran, Starmer's special relationship with him could conceivably be stretched to breaking point. The prime minister can't escape his woes on domestic matters. His intense diplomacy was interrupted on Thursday by the unwelcome news that Vicky Foxcroft had resigned as a whip in protest at the government's cuts to disability benefits. She might not be the last to quit a government post before the crunch vote on £5bn of welfare cuts on 1 July, when Starmer faces the biggest Labour revolt of his premiership. Some parliamentary aides to ministers are on resignation watch. The government's robotic response to Foxcroft's departure, which failed to acknowledge her respected work as shadow disabilities minister before last year's election, angered some Labour MPs. Many will rebel with a heavy heart. They accept the need to reduce the ballooning welfare budget, but think the panicky cuts ahead of Rachel Reeves's spring statement symbolise how the government repeatedly reacts to events – in this case, living from hand to mouth to stick within the chancellor's fiscal rules – instead of having a long-term reform strategy. For some Whitehall-watchers, Starmer will not improve matters unless he reforms the centre of government. Critics think the relationship between No 10 and the Cabinet Office isn't working, leaving the other side of the triangle, the Treasury, to call the shots. The result: the winter fuel allowance catastrophe and now the welfare rebellion. Even some in Downing Street admit privately a shake-up is needed. Sam Freedman, a former special adviser and author of an excellent book, Failed State, suggests loosening the Treasury's grip by forming an Office of Budget Management, run jointly by the Treasury and Downing Street, which would oversee future spending reviews to ensure they reflect the PM's priorities. Freedman believes Starmer should consider a change Tony Blair introduced in his second term, which improved public service delivery. To prevent the whole operation being sucked into reacting to events, three units focused on different timescales: a policy unit on day-to-day oversight of Whitehall departments; a delivery unit on a small number of the PM's priorities (in Starmer's case, that would be his five missions); and a strategy unit on difficult long-term challenges. This ensured a more strategic state. One problem today is that the 'missions delivery unit' is based in the Cabinet Office rather than No 10. The Institute for Government (IFG) think tank has made a sensible proposal to abolish the Cabinet Office and set up an expanded 'Office of the Prime Minister', which would then take charge of the missions. Do such structures really matter? Yes. They are even more important when a PM makes a virtue out of his pragmatism and lack of ideology, as Starmer does. Like many predecessors, Starmer complains the Whitehall machine is slow to crank into life when he demands action. Often fair – but civil servants also have a point when they grumble that this government does not give them clear enough marching orders. For example, the government's own commitment to Starmer's missions – later relaunched as six milestones in his 'plan for change' – is now being questioned in Whitehall. Ministers promised the missions would be the 'guiding star' of the government-wide spending review unveiled by Reeves last week, and that cabinet ministers would collaborate on cross-departmental working and budgets. Only one problem: there was little money to go round. So the review again became a trial of strength between the Treasury and individual ministers trying to protect their departments. Starmer's 'mission-driven government' was caught in the crossfire and some Whitehall officials think the idea suffered serious damage. The IFG calculates that two of the missions – on economic growth and clean energy – did well out of the spending review, but the other three – on health, safer streets and opportunity – look difficult to achieve. Another reason why the missions matter is that this government doesn't have the option of pumping in extra cash to secure the improvements to public services voters want, as Blair and Gordon Brown enjoyed. Although Reeves won headlines for her big boost to building projects, her squeeze on day-to-day budgets is viewed in Whitehall as a 'standstill settlement'. So reform and efficiency savings will be needed to secure tangible improvements – not least in the NHS. The missions can play a part in prioritising these goals. With many public services still struggling in the voters' eyes, standing still will not win Labour a second term.
Daily Mail
5 hours ago
- Daily Mail
EXCLUSIVE Nicola Peltz is spoiled. Do they realise what their sneering sounds like?: After 'tight' accusation David and Victoria's friends call KATIE HIND and let rip - and reveal true story
When Brooklyn Beckham turned 15, he got a job as a barista in a Kensington coffee shop where his remuneration was a modest £2.68 per hour. It was part of a plan by his parents, David and Victoria, to teach their children the value of money.
Daily Mail
6 hours ago
- Daily Mail
Angela Rayner accused of waging 'class war' over her plans to cut funding for wealthier Southern areas so more can be spent in the North
Labour was yesterday accused of declaring 'class war' over plans to cut funding for town halls in the South and splurge it in its northern heartlands. Under Angela Rayner 's shake-up, wealthier southern households face a raft of raids to help pay for the giveaway in Labour's traditional working-class areas. These include hikes in council tax bills and fees, such as parking, planning and licensing charges. Town halls in the South also face having to cut existing services because of the raid on their coffers. Under the plans, unveiled yesterday, town halls with 'stronger council tax bases', which tend to be in wealthier parts of London and the Home Counties, will get less Government cash. Those with 'weaker bases', often in the North, will get more under the 'progressive' redistribution model. The Deputy Prime Minister Ms Rayner, who is also the local government secretary, has long argued that an overhaul of council funding is needed. Ms Rayner, the MP for Ashton-under-Lyne, has pointed to people living in the North who pay hundreds of pounds more in council tax than those in wealthier southern areas, calling it 'unfair'. But the plans, which affect councils in England and would begin for three years from next April, sparked a furious backlash. Greg Smith, the Tory MP for Mid Buckinghamshire, said: 'We're already massively over-taxed and council tax has already blown out of all proportion across the country. 'Anything that takes from the South to pay for the North is class war.' And Kevin Hollinrake, the Tories' local government spokesman, said: 'In reality, Labour's appetite for tax hikes knows no bounds. These new backdoor rises in fees and charges are nothing more than stealth taxes – punishing the very councils that have kept taxes low and responsible.' The new proposed formula for allocating money would take into account local needs, based on population, poverty and age data. This will lead to more cash going to deprived areas. And Government grants, which account for about half of councils' income, will now be based on calculations of what local authorities could raise if all areas charged the same rates of council tax based on their housing mix. This will mean steep falls in grant income for wealthier councils. Vikki Slade, the Lib Dems' local government spokesman, said: 'It would be a big mistake for the Government to force councils into unfair council tax rises. 'At a time when councils desperately need support, it beggars belief that Angela Rayner is considering reducing funding entitlements for many, including councils which already receive very little grant funding.' But ministers insist councils won't go bust as it would be phased in over three years, removing a potential 'cliff edge' if the redistribution happened in one go. They also say it will not lead to huge council tax hikes because these are already capped at 5 per cent, and most councils already raise it by this amount every year. However, they could apply to Ms Rayner, who is from Stockport, for special permission to raise it by more than this given the unprecedented pressure their finances could come under. They are also likely to look at cutting back on existing services and hiking other fees to help balance the books. It raises the prospect of councils being handed more powers to raise revenues by hiking such fees. Yesterday's new consultation, which will run until August 15, said ministers will now 'review all fees previously identified and consider where there is the strongest case for reform'. Kate Ogden, a senior research economist at the Institute for Fiscal Studies, said councils in 'leafier suburban and rural areas' in the South will be among the biggest losers. Local government minister Jim McMahon said: 'There's broad agreement across council leaders, experts, and parliamentarians that the current funding model is broken and unfair. 'This Government is stepping up to deliver the fairer system promised in the 2017 Fair Funding Review but never delivered.'
