LONDON, Aug. 10 /CNW/ - The 12 members of the Organization of Petroleum
Exporting Countries (OPEC) pumped an average 30.5 million b/d of crude in
July, 280,000 b/d higher than June's 30.22 million b/d, a Platts
(http://www.platts.com/) survey showed August 10.
Production from the 10 members bound by output agreements averaged
26.71 million b/d, up 110,000 b/d from June's 26.6 million b/d, the survey
Iraq, struggling to rebuild its oil industry after years of United
Nations sanctions followed by a US-led war, does not participate in OPEC
output pacts. Nor, at this stage, does Angola, which joined the producer group
at the beginning of this year, after the output curbs currently in place were
OPEC-10 production has not fallen anywhere near the 25.8 million b/d
target that came into effect at the beginning of February and has edged up
over the past three months. The latest estimates leave OPEC-10 production more
than 900,000 b/d above the notional ceiling.
The biggest single output increase came from Iraq, thanks to a recovery
in exports from the south and some exports of northern crude from Ceyhan on
the Turkish Mediterranean.
"This is terrific news for consumers, as the world is going to need this
oil as we head toward the fourth quarter, the period in which demand is at its
highest," said John Kingston, Platts Global Director of Oil. "However, with
the increase coming from Iraq, it does raise the question over whether such a
jump can be sustained."
Nigerian output also showed some recovery, with Shell inching its way
back into the 380,000 b/d Forcados field and sending some workers back to
abandoned flow stations in the remote swamps around the Forcados terminal. The
field was shut in during February 2006 after militants bombed the export
terminal as part of a campaign to wrest greater control of the country's oil
Other, smaller increases came from Angola, Iran, Qatar and the UAE.
OPEC is next scheduled to meet on September 11 in Vienna but has given no
indication that, despite the upward drift in production, it may heed calls
from the International Energy Agency and the world's biggest oil consumer, the
United States, to boost output ahead of the winter.
Algeria's Minister for Energy and Mines Chakib Khelil said last Saturday
that there was, at the moment, "no reason to increase or to decrease
production," but that OPEC would review the market at its upcoming meeting.
"If there is a need to increase production, we will increase and if there
is a need to decrease, we will decrease," he said, reiterating the view put
forward by other top OPEC officials that there is not a shortage of crude but
of refining capacity.
Country July June May April March Cut
Algeria 1.350 1.350 1.350 1.330 1.330 0.084
Indonesia 0.830 0.830 0.840 0.840 0.850 0.055
Iran 3.900 3.880 3.850 3.800 3.800 0.249
Kuwait 2.420 2.420 2.420 2.410 2.410 0.142
Libya 1.680 1.680 1.680 1.680 1.680 0.102
Nigeria 2.150 2.080 2.050 2.200 2.150 0.142
Qatar 0.810 0.800 0.800 0.790 0.790 0.050
Saudi Arabia 8.610 8.610 8.610 8.600 8.600 0.538
UAE 2.560 2.550 2.540 2.500 2.500 0.143
Venezuela 2.400 2.400 2.420 2.420 2.430 0.195
OPEC-10 26.710 26.600 26.560 26.570 26.540 1.700
Angola(*) 1.670 1.640 1.630 1.580 1.570 N/A
Iraq 2.120 1.980 2.020 2.040 2.000 N/A
Total 30.500 30.220 30.210 30.190 30.110
(*)Angola joined OPEC on January 1, 2007
For more information on OPEC, go to the "Platts Guide to OPEC" at
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