Platts Survey: OPEC Oil Output Up Above Target
The 10 members of the Organization of Petroleum Exporting Countries (OPEC) bound by the group's crude oil output agreements boosted production by 40,000 barrels per day to 26.6 million in June, from a revised May level of 26.56 million b/d, a Platts survey showed July 11. This is well above the 25.8-million b/d production target set in February by the so-called OPEC-10.
Total OPEC output, including volumes from Iraq and new member Angola, averaged 30.22 million b/d in June, slightly higher than a revised figure of 30.21 million b/d for May, the survey showed. Iraq does not participate in OPEC output agreements, while Angola, whose membership of the group began in January, has yet to accept or be allocated any output target.
Small volume increases totaling 80,000 b/d from Angola, Iran, Nigeria and the UAE were almost completely offset by output decreases totaling 70,000 b/d from Iraq, Indonesia and Venezuela.
Nigerian production in May has been revised downward to 2.05 million b/d from 2.13 million b/d. In June, the survey found Nigerian production to have risen to 2.08 million b/d from the revised May level.
The International Energy Agency has called on OPEC to increase production ahead of the winter to ensure consumer stocks are adequate. OPEC has insisted that there is no current need for additional supply from its members but that it stands ready to produce more crude if this becomes necessary.
"Given what groups such as the International Energy Agency are saying is required for supply and demand to stay balanced in the second half of the year, consumers can't view this latest report as anything but discouraging," says John Kingston, Platts global director of oil. "Particularly worrisome is the fact that in the best one-step-forward-one-step-back practice, the production gains that were recorded were offset by losses elsewhere, including Venezuela. A supply- demand balance that many see as a squeeze now, could be much tighter by the end of the year."
OPEC is next scheduled to meet on September 11 in Vienna, where it has its headquarters. The group last met in mid-March, when it decided to keep in place the nominal 1.7 million b/d in output curbs agreed late last year.
Country June May April March February Cut Algeria 1.350 1.350 1.330 1.330 1.330 0.084 Indonesia 0.830 0.840 0.840 0.850 0.840 0.055 Iran 3.880 3.850 3.800 3.800 3.800 0.249 Kuwait 2.420 2.420 2.410 2.410 2.410 0.142 Libya 1.680 1.680 1.680 1.680 1.680 0.102 Nigeria 2.080 2.050 r 2.200 2.150 2.250 0.142 Qatar 0.800 0.800 0.790 0.790 0.790 0.050 Saudi Arabia 8.610 8.610 8.600 8.600 8.600 0.538 UAE 2.550 2.540 2.500 2.500 2.490 0.143 Venezuela 2.400 2.420 2.420 2.430 2.430 0.195 OPEC-10 26.600 26.560 r 26.570 26.540 26.620 1.700 Angola* 1.640 1.630 1.580 1.570 1.550 N/A Iraq 1.980 2.020 2.040 2.000 2.010 N/A Total 30.220 30.210 r 30.190 30.110 30.180 ** Angola joined OPEC on January 1, 2007
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