OPEC pumps 29.95 million b/d in September, up 40,000 b/d

 

Crude production from OPEC's eleven members rose by 40,000 barrels per day last month, to 29.95 million b/d in September from 29.91 million b/d in August, a Platts survey of OPEC and oil industry officials showed October 10.

Excluding Iraq, however, production from the ten members with quotas under a notional 28 million b/d ceiling fell by 100,000 b/d to 27.81million b/d in September from 27.91 million b/d in August.

Only Saudi Arabia reduced output last month, production falling to 9.1 million b/d in September from 9.28 million b/d in August, the survey showed.

The biggest single increase -- 140,000 b/d -- came from Iraq, whose September supply the survey estimated at 2.14 million b/d, compared with 2 million b/d in August. Other smaller increases came from Venezuela, Algeria and Libya.

Nigerian production was largely flat around 2.3 million b/d. Volumes from Indonesia, Iran, Kuwait, Qatar and the UAE were also unchanged at August levels.

John Kingston, Global Director of Oil at Platts, said, "These are the stark realities OPEC is facing: It already is producing more than the world needs to keep already high inventories from growing further. The International Energy Agency last month estimated that the world only needed 29.5 million b/d of OPEC crude in the fourth quarter of 2006, and they are looking at even lower demand for OPEC crude in the first quarter of next year. These are the numbers driving OPEC's current efforts to cut production. OPEC is currently talking about a 1 million b/d cut. Whether an actual cut amounts to anything like that volume remains to be seen."

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