OPEC output in May up as Saudi Arabia opens taps

Total OPEC output for the month, including Iraq which has no quota, made a smaller 320,000 bpd rise to 28.38 million bpd, as sabotage attacks cut into Iraqi exports, the survey showed.

The May increase came as Gulf OPEC producers Saudi Arabia and the United Arab Emirates began to ramp up production to curb a price rally that sent US crude to 21-year highs above $40 a barrel.

Saudi output rose by 320,000 bpd in May to 8.65 million bpd, more than reversing cuts that the kingdom enacted in April when it was still concerned prices could fall as demand declined after the northern winter.

Saudi Arabia and the UAE raised output ahead of last week’s deal by the OPEC-10 to lift a formal production target by 2 million bpd from July 1 to 25.5 million bpd, and by a further 500,000 bpd from August 1.

Saudi Arabia has already said it will produce 9.1 million bpd in June — a further 450,000 bpd increase from May’s level — irrespective of its quota. Its formal limit from July 1 will be just 8.288 million bpd.

The UAE has said it will raise production by a total 400,000 barrels per day to help cool prices. The UAE already lifted output by 150,000 in May bpd as offshore facilities came back onstream after field maintenance. —(Reuters)