
The Organisation of Petroleum Exporting Countries (OPEC) crude oil production slowed last month, due to the United Arab Emirates implementing supply cutbacks designed to keep global oil markets afloat.
According to a recent survey conducted by Bloomberg, output from OPEC dropped by 120,000 barrels per day (bpd) – reaching 27.05 million bpd. The UAE accounted for most of the dip.
Modest gains in Nigeria and Libya were offset by reductions on a similar scale in Kuwait and Iran.
Headed by Saudi Arabia, the intergovernmental organisation and its allies have withheld crude output over the last few years in a move to defend prices from weak oil demand and abundant American supplies. In December, OPEC once again agreed to stall plans to revive halted crude production.
Crude oil is used to make mineral oil – a key element of a wide range of lubricant types like grease, cutting fluid and hydraulic oil, and engineered by companies like Aeroshell, Morris, Mobil and Q8 Oils, among others.
The report from Bloomberg noted that not all OPEC members have completely delivered the cutbacks they pledged. While OPEC data indicates that Abu Dhabi is adhering to its promised quota, other assessments, such as the Bloomberg’s survey, show that the UAE is one of several nations that are still overproducing crude.
The recent UAE cutback may represent a push for tighter discipline. It cut oil exports to the lowest output in 18 months according to oil tanker tracking information collated by Bloomberg.