OPEC Output Up 730,000 Barrels Per Day in July
Platts
OPEC's eleven members, including Iraq,
pumped an average 29.67 million barrels per day (mil b/d) of crude in July,
730,000 b/d higher than June's 28.94-mil b/d, a Platts survey of OPEC and oil
industry officials showed August 10.
Excluding Iraq, which does not participate in OPEC production accords, the ten members with output quotas produced an average 27.72-mil b/d, an increase of 480,000 b/d from their June average of 27.24-mil b/d and more than 1.7-mil b/d in excess of the 26-mil b/d official output ceiling which came into effect at the beginning of August.
"Now the focus turns from what the countries are producing relative to their quota and moves to what they are producing relative to their capacity," said John Kingston, global director of oil at Platts. "A few hundred thousand barrels per day might be carved out here and there from countries other than Saudi Arabia, but it's Riyadh that will make the difference."
The biggest single increase-300,000 b/d-came from Saudi Arabia which boosted its output to 9.4-mil b/d in July from 9.1-mil b/d in June. The Saudis have pledged to increase production to their full capacity of 10.5-mil b/d- which they say can be reached quickly-if this proves necessary.
"Estimates of Saudi spare capacity have been put as low as 500,000 b/d and as much as 1.5 to 2-million b/d," Kingston said. "Whatever the level, the fact is that the world's capacity to produce oil is being asked for a yield that it has probably never seen. And with disruptions this week in Iraq, possible turmoil in Venezuela this weekend during the Chavez recall vote and the normal crises that have beset oil for many months, the market is living on the edge. It will take a downturn in demand - and that generally only occurs with a weak global economy -- to put a little more flexibility into a very tightly drawn rubber band."
Iraqi production recovered to 1.95-mil b/d in July after sabotage on southern pipelines sent output falling to 1.7-mil b/d in June from 1.9-mil b/d in May.
Only Indonesia, whose crude output is currently in decline, saw production fall. Kuwait, Nigeria and Qatar maintained production at June levels. Other countries increased output by between 10,000 b/d and 60,000 b/d.
Country-by-country breakdown of production with figures in millions of b/d:
Excluding Iraq, which does not participate in OPEC production accords, the ten members with output quotas produced an average 27.72-mil b/d, an increase of 480,000 b/d from their June average of 27.24-mil b/d and more than 1.7-mil b/d in excess of the 26-mil b/d official output ceiling which came into effect at the beginning of August.
"Now the focus turns from what the countries are producing relative to their quota and moves to what they are producing relative to their capacity," said John Kingston, global director of oil at Platts. "A few hundred thousand barrels per day might be carved out here and there from countries other than Saudi Arabia, but it's Riyadh that will make the difference."
The biggest single increase-300,000 b/d-came from Saudi Arabia which boosted its output to 9.4-mil b/d in July from 9.1-mil b/d in June. The Saudis have pledged to increase production to their full capacity of 10.5-mil b/d- which they say can be reached quickly-if this proves necessary.
"Estimates of Saudi spare capacity have been put as low as 500,000 b/d and as much as 1.5 to 2-million b/d," Kingston said. "Whatever the level, the fact is that the world's capacity to produce oil is being asked for a yield that it has probably never seen. And with disruptions this week in Iraq, possible turmoil in Venezuela this weekend during the Chavez recall vote and the normal crises that have beset oil for many months, the market is living on the edge. It will take a downturn in demand - and that generally only occurs with a weak global economy -- to put a little more flexibility into a very tightly drawn rubber band."
Iraqi production recovered to 1.95-mil b/d in July after sabotage on southern pipelines sent output falling to 1.7-mil b/d in June from 1.9-mil b/d in May.
Only Indonesia, whose crude output is currently in decline, saw production fall. Kuwait, Nigeria and Qatar maintained production at June levels. Other countries increased output by between 10,000 b/d and 60,000 b/d.
Country-by-country breakdown of production with figures in millions of b/d:
Country July 04 June 04 May 04 Apr 04 Quota- Quota- Quota- Apr 1 Jul 1 Aug 1 Algeria 1.250 1.200 1.170 1.150 0.750 0.814 0.830 Indonesia 0.960 0.970 0.970 0.980 1.218 1.322 1.347 Iran 3.980 3.960 3.920 3.880 3.450 3.744 3.817 Iraq 1.950 1.700 1.900 2.380 N/A N/A N/A Kuwait 2.350 2.350 2.300 2.210 1.886 2.046 2.087 Libya 1.590 1.540 1.470 1.460 1.258 1.365 1.392 Nigeria 2.400 2.400 2.350 2.350 1.936 2.101 2.142 Qatar 0.780 0.780 0.760 0.740 0.609 0.661 0.674 Saudi Arabia 9.400 9.100 8.600 8.300 7.638 8.288 8.450 UAE 2.390 2.380 2.260 2.100 2.051 2.225 2.269 Venezuela 2.620 2.560 2.560 2.520 2.704 2.934 2.992 Total 29.670 28.940 28.260 28.070 N/A N/A N/A OPEC 10 (excluding Iraq) 27.720 27.240 26.360 25.690 23.500 25.500 26.000
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