LONDON, Sept. 7 /CNW/ -- OPEC crude production fell by 40,000 barrels per
day (b/d) in August, to 30.46 million b/d from 30.5 million b/d in July,
mainly because of lower exports from Iraq, a Platts (http://www.platts.com/)
survey showed September 7.
The ten members bound by production agreements, however, boosted output
by 80,000 b/d, to 26.79 million b/d in August from 26.71 million b/d in July,
the survey showed.
OPEC ministers meet in Vienna on September 11 to review the current
agreement, which sets target output at 25.8 million b/d. Several ministers
have said in the runup to the meeting that they do not see any need for the
group to raise this target.
Actual OPEC-10 production has been steadily creeping up over the summer,
however, and is now about a million barrels per day above the 25.8 million b/d
John Kingston, Global Director of Oil at Platts, said, "OPEC faces a real
dilemma at its upcoming meeting. On the one hand, prices have climbed back up
toward the $75 level, and the supply/demand balance projects a tight market in
coming months, which might encourage OPEC to raise production. But when the
organization looks at Friday's U.S. employment figures, and considers the
ramifications of the US subprime mess, it will be concerned that a significant
slowdown in demand could be around the corner. With that in mind, it is
difficult to see a scenario in which it will vote to raise output, given that
based on our survey, production is rising slightly regardless."
Apart from a small dip in Iranian production, the only significant
decline came from Iraq. Iraqi exports had been boosted in July by the first
liftings from Turkish Mediterranean port Ceyhan since January. There were no
exports from Ceyhan in August, leaving Iraq to rely solely on its southern
terminals. State oil marketer SOMO will sell 5 million barrels from Ceyhan in
September, however, having built up stocks at the port.
Iraq, struggling to rebuild its oil industry after years of United
Nations sanctions and a US-led war in 2003, does not participate in OPEC
output pacts. Angola, which became a member in January this year, has yet to
join the quota system.
Country August July June May April Cut
Algeria 1.360 1.350 1.350 1.350 1.330 0.084
Indonesia 0.830 0.830 0.830 0.840 0.840 0.055
Iran 3.880 3.900 3.880 3.850 3.800 0.249
Kuwait 2.420 2.420 2.420 2.420 2.410 0.142
Libya 1.690 1.680 1.680 1.680 1.680 0.102
Nigeria 2.150 2.150 2.080 2.050(R) 2.200 0.142
Qatar 0.810 0.810 0.800 0.800 0.790 0.050
Saudi Arabia 8.660 8.610 8.610 8.610 8.600 0.538
UAE 2.590 2.560 2.550 2.540 2.500 0.143
Venezuela 2.400 2.400 2.400 2.420 2.420 0.195
OPEC-10 26.790 26.710 26.600 26.560(R) 26.570 1.700
Angola(*) 1.680 1.670 1.640 1.630 1.580 N/A
Iraq 1.990 2.120 1.980 2.020 2.040 N/A
Total 30.460 30.500 30.220 30.210(R) 30.190 (*) Angola
joined OPEC on January 1, 2007. ( R ) means revised.
For more information on OPEC, go to the "Platts Guide to OPEC" at
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