The United Arab Emirates (UAE), OPEC’s third-largest producer at the moment, violated its raw material production quota by 520,000 barrels a day in August, according to data from the International Energy Agency (IEA). This indicates that one of Saudi Arabia’s allies in “setting an example” for a reduced production deal may be the new headache of the cartel, writes OilPrice.
According to a report by the International Energy Agency, quoted by Bloomberg, the UAE pumped 3.11 million barrels per day in August, which is 240,000 barrels per day more than in July and 520,000 barrels per day above the 2.59 million barrel ceiling. per day according to the OPEC + deal.
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Using tanker tracking data, the IEA also estimated that OPEC’s third-largest producer exported about 2.7 million barrels a day in August and processed 370,000 barrels a day in refineries.
Weeks ago, UAE Energy Minister Suhail al-Mazroui acknowledged that UAE production had risen to over August’s quota, but “steps have been taken to offset this temporary increase due to a peak in summer demand for UAE electricity that required an increase. of oil production and related gas “.
Last week, the UAE estimated that it exported much more crude oil in August because it produced more than its OPEC + quota, undermining the oil market’s belief in the group’s reduction in unity.
Unlike previous OPEC + pacts, non-compliance with quotas this time requires culprits to compensate any over-quota production with more reductions in the coming months.
Saudi Arabia, which has publicly pressured non-compliant OPEC members Iraq and Nigeria to comply with their quotas, will now likely be more discreet in putting pressure on the UAE, according to RBC Capital Markets, quoted by Bloomberg.