Global oil supply fell by 360 thousand barrels per day (kb/d) month-on-month (m-o-m) in November to 101.1 mb/d, according to data of the International Energy Agency (IEA) on Thursday.
The Organization of the Petroleum Exporting Countries (OPEC) crude oil output rose by 100 kb/d m-o-m to 33.03 mb/d in November as Saudi Arabia and the United Arab Emirates (U.A.E.) reached record high production, according to the IEA's Oil Market Report.
According to IEA data, Saudi Arabia delivered the biggest increase, with output surging 410 kb/d month-on-month (m-o-m) to 11.06 mb/d in November.
In addition, the U.A.E.'s supply rose by 110 kb/d m-o-m to 3.33 mb/d.
Iranian crude production tumbled by 310 kb/d m-o-m to 3.01 mb/d as customers backed off due to U.S. sanctions on the country. Output in November was the lowest since January 2016.
In July, the U.S. State Department announced its intention to reduce Iranian oil revenue to zero. Iranian President Hassan Rouhani swiftly responded by warning the U.S. against impeding Iranian oil exports.
A second phase of sanctions targeting Iran’s energy sector came into effect on Nov. 5, although Washington granted temporary waivers to the eight largest purchasers of Iranian oil for a 180-day period.
In November, non-OPEC production, at 61.1 mb/d, was up 1.9 mb/d on a year ago. Global oil supply showed lower output in the North Sea, Canada
and Russia.
- OPEC and non-OPEC allies agree new cut
Last week, OPEC member countries and 10 non-OPEC producers agreed to cut supplies by 1.2 mb/d from Jan. 1 for six months, based on October 2018 levels.
OPEC will shoulder 0.8 mb/d of the cuts - equivalent to roughly 2.5 percent of its total output, and non-OPEC will endure the remaining 400 kb/d in cuts or about 2 percent of its total.
By Gulsen Cagatay
Anadolu Agency
energy@aa.com.tr