Platts Survey: Total OPEC Output Dips 40,000 b/d to 30.46 mb/d in August

Platts Survey: Total OPEC Output Dips 40,000 b/d to 30.46 mb/d in August

September 08, 2007

    LONDON, Sept. 8 /Xinhua-PRNewswire/ -- 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 target.

    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 http://www.opec.platts.com.

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