Saudi Arabia pumped record-high amounts of oil in November, amid talks over a global deal to cut production, defying market expectations of lower output on slower domestic demand and refinery maintenance.
The world’s top oil exporter told the Organisation of the Petroleum Exporting Countries it pumped 10.72mn bpd last month, an Opec source said, up from 10.625mn bpd in October.
In July, the kingdom’s production was 10.67mn bpd, the previous high.
Iraq said its November output was 4.8mn bpd, up from 4.776mn bpd in October, another Opec source said, as oil exports reached a record high of 4.051mn bpd.
Gulf Opec member Kuwait reported output at 2.9mn bpd in November, lower than its 3mn bpd in October, while the UAE kept its output virtually steady at 3.195mn bpd, according to official figures reported to Opec.
Saudi Arabia has pledged to reduce its output to 10.058mn bpd as part of an Opec deal reached on November 30 to lower the group’s production to 32.5mn bpd.
The rise in November means Saudi Arabia, Opec’s biggest producer, will have a bigger task in complying with a plan to cut supply starting in 2017 – its first production-reduction deal since 2008.
Saudi crude exports have been high in recent months, reaching 7.812mn bpd in September, while output has stayed at elevated levels despite the usual seasonal decline in winter when domestic consumption of crude burning for power is less.
A Reuters survey estimated Saudi production in November at 10.45mn bpd due to reduced crude use in power plants for air-conditioning, and lower refining. A Platts Opec survey in November estimated Saudi oil production at 10.52mn bpd.
Opec and non-Opec producers on Saturday reached their first deal since 2001 to curtail oil output jointly and ease a global glut after more than two years of low prices.
With the deal finally signed after almost a year of arguing within Opec, the market’s focus will now switch to compliance.
The fact that Nigeria and Libya were exempt from the deal due to production-denting civil strife will further pressure Opec’s leading member Saudi Arabia to shoulder the bulk of supply reductions.
Saudi Energy Minister Khalid al-Falih said the kingdom may be willing to cut to below 10.058mn bpd next year.




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