Opec oil output in December fell to its lowest level since May as Saudi Arabia cut output and Iraqi exports slumped, a Reuters survey showed. Output from the Organisation of the Petroleum Exporting Countries (Opec) fell 180,000 barrels per day (bpd) to 29.81 million bpd.
Saudi Arabia cut production by 150,000 bpd to around 9.4 million bpd as buyers in the US requested less crude ahead of shutdowns for spring refinery maintenance, according to the survey of consultants, shippers, industry and Opec sources.
A heavy round of maintenance is due to start toward the end of the first quarter after some US refiners delayed work in the autumn to compensate for hurricane-related outages on the US gulf coast.
Iraq's exports fell to their lowest level since 2003 at 1.08 million bpd, down from 1.21 million bpd in November.
Bad weather, technical problems and pipeline sabotage combined to reduce Iraq's shipments. The falling exports underscore Iraq's trouble in reviving its oil sector, damaged by decades of wars and United Nations trade sanctions.
Sabotage attacks and insecurity in the country have prevented essential maintenance on the country's ageing infrastructure. Insecurity also reduced crude deliveries through pipelines to its refineries.
Production from the 10 Opec members not bound by quotas, excluding Iraq, fell 50,000 bpd to 28.23 million bpd as increased output from the United Arab Emirates (UAE) partially compensated for the fall in Saudi output.
Output from the Opec 10 was 230,000 bpd above the group's quota target of 28 million bpd.Opec said at its December meeting that it would look to trim output back to quota levels, preparing for deeper cuts when demand falls after winter ends.
But some Opec members have said that there is no need to cut after an early rally in oil prices this year.
US light crude stood at $63.55 (€52.30) a barrel yesterday. The UAE boosted its exports by around 80,000 bpd in December from November. It aims to boost output capacity of its principal crude, Murban, to 1.5 million bpd early this year from 1.2 million bpd.
However, the UAE has cut its January exports by 10 per cent due to maintenance at a natural gas plant.
