OPEC Output Down 240,000 Barrels Per Day in October, According to Platts
Crude production from OPEC's 11 members fell 240,000 barrels per day to 30.07-million barrels per day (mil b/d) in October from 30.31-mil b/d in September, a Platts survey of OPEC and oil industry officials showed November 9.
The drop largely reflected a plunge in output from Iraq, whose production and exports have fluctuated widely since the March 2003 US-led invasion as the country has struggled to rebuild its beleaguered oil sector.
"Even with a reduction in OPEC output last month, albeit mostly from Iraq, the organization actually faces an issue of cutting production when it meets next month," said John Kingston, Platts' global director of oil. "This is close to unbelievable, given the loss in output from the Gulf of Mexico after Katrina and Rita. Yet despite that, inventories are building, we're coming out of the 4th quarter-which is the heaviest demand quarter-and it's not unreasonable for the OPEC countries to see the market as heavily oversupplied. The reversal is astounding."
Excluding Iraq, production from the ten members with notional quotas under a 28-mil b/d ceiling dipped 50,000 b/d to 28.27-mil b/d in October from 28.32-mil b/d the previous month.
Poor weather conditions in the Persian Gulf dealt a blow to Iraqi crude exports and production last month. But weather was not the only factor in lower Iraqi volumes, which have been hit by power outages, limited well maintenance, higher water levels in oil wells, and pipeline problems. Iraqi production fell to 1.8-mil b/d in October from 1.99-mil b/d in September.
Saudi Arabian production edged down 60,000 b/d to 9.5-mil b/d from 9.56- mil b/d in September. Venezuelan output, which has not recovered from a crippling oil workers' strike in the winter of 2002-2003, also eased back, by 10,000 b/d, to 2.6-mil b/d.
Small increases of 10,000 b/d came from Algeria, where foreign companies have helped boost output steadily in recent years, and Qatar.
Prices have fallen by more than ten dollars since late August when US light crude hit an all-time high of $70.85/bbl.
Country-by-country breakdown of production with figures in millions of b/d: Country Oct 05 Sept 05 Aug 05 July 05 June 05 Quota Algeria 1.360 1.350 1.350 1.340 1.330 0.894 Indonesia 0.930 0.930 0.940 0.940 0.950 1.451 Iran 3.950 3.950 4.000 4.000 3.990 4.110 Iraq 1.800 1.990 1.890 1.960 1.850 N/A Kuwait 2.550 2.550 2.550 2.550 2.550 2.247 Libya 1.650 1.650 1.650 1.650 1.630 1.500 Nigeria 2.450 2.450 2.450 2.450 2.450 2.306 Qatar 0.800 0.790 0.790 0.780 0.780 0.726 Saudi Arabia 9.500 9.560 9.550 9.500 9.500 9.099 UAE 2.480 2.480 2.470 2.450 2.430 2.444 Venezuela 2.600 2.610 2.620 2.630 2.640 3.223 Total 30.070 30.310 30.260 30.250 30.100 N/A OPEC 10 (excluding Iraq) 28.270 28.320 28.370 28.290 28.250 28.000
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