03 December 2018, Sweetcrude, Lagos — A market survey by Reuters has shown that Saudi Arabia and the United Arab Emirates, UAE were the most beneficiaries of loss of crude oil market share by Iran.
According to the survey, although OPEC oil supply fell in November, fell from a two-year high due to U.S. sanctions on Iran, however, most of the output gap was filled by Saudi Arabia and the UAE after the U.S. President, Donald Trump called on Saudi to pump more.
The biggest fill-in came from Saudi Arabia, where supply hit a record 11 million bpd, while UAE output rose following a jump in October, reaching 3.35 million bpd. The UAE says its oil-production capacity will reach 3.5 million bpd by the year-end.
The Organisation of the Petroleum Exporting Countries had pumped 33.11 million barrels per day in December, down 160,000 bpd from October, which was the highest by OPEC as a group since December 2016, the survey showed.
President Trump had re-imposed sanctions on Iran over a nuclear deal last month, forcing the country’s export down as importing countries who favoured its oil were scared of backlashes from the U.S.
OPEC, Russia and other non-members agreed in June to return to 100 percent compliance after going above 160 percent earlier in the year.
Although Iran had boasted how the sanctions would not affect its exports, however, the survey showed that the biggest drop in OPEC supply this month came from the country. Its exports sometimes fell below 1 million bpd.
The second-biggest drop was in Iraq- exports from southern Iraqi terminals dropped due to bad weather.
Both Libya and Nigeria also witnessed drop although they were exempted from the cuts. It is not clear which of the countries would be included in the next cut pact.