OPEC 10 production down 10,000 b/d in May to 27.435 mil b/d: EIA

New York (Platts)--6Jun2006

The US Energy Information Administration Tuesday revised its estimate of
Saudi Arabia's April crude production downward by 400,000 b/d to 9.2 million
b/d, saying it had "better information" on the kingdom's output this year.

EIA, in its monthly Short-Term Energy Outlook, said the Saudis pumped 9.2
million b/d in May as well.

The agency, the statistical arm of the Department of Energy, said it also
adjusted downward by 200,000 b/d its forecast for Saudi production for
full-year 2006 "given better information on actual production through May."

That better information apparently led to the large revision for EIA's
estimate of April output from the kingdom. When EIA published its May STEO, it
said the Saudis pumped 9.6 million b/d in April.

EIA said OPEC 10, the 10 members of OPEC that are part of the cartel's
quota system, produced 27.435 million b/d in May, down 10,000 b/d from April's
revised figure of 27.445 million b/d.

Iraq, which is not bound by OPEC's quota system, produced 1.9 million b/d
in May, unchanged from April, according to EIA.

OPEC last Thursday decided in Caracas, Venezuela, to leave its current 28
million b/d production ceiling unchanged, saying prices north of $70/barrel
outweighed, for now, bearish market indicators.

May OPEC 10 output of 27.435 million b/d means OPEC is under-producing
its current ceiling by 565,000 b/d, according to EIA figures.

With the cut in Saudi output, EIA increased its estimate of OPEC's spare
production capacity to 1.3-1.8 million b/d, up from 900,000-1.4 million b/d.

--Kevin Saville, kevin_saville@platts.com

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