London (Platts)--11Aug2009

OPEC's 12 members produced 28.685 million b/d in July, up 160,000 b/d
from June's 28.525 million b/d, the oil-producer club said Tuesday.

The July production level, derived from secondary source estimates, is
285,000 b/d more than OPEC's 28.4 million b/d forecast of demand for its crude
this year and 685,000 b/d more than the 28 million b/d demand level forecast
for 2010.

Excluding Iraq, the 11 members bound by quotas produced 26.198 million
b/d in July, up from 26.093 million b/d in June and 1.35 million b/d in excess
of their 24.845 million b/d output target.

"Most of the increase came from Angola, Iraq and Saudi Arabia," OPEC
said.

OPEC is scheduled to meet on September 9 in Vienna. It has yet to
indicate whether it may adjust the 24.845 million b/d target, which it has
already rubber-stamped twice this year.

Enthusiasm for the 4.2 million b/d in cuts agreed late last year had
initially been strong, with compliance reaching 81.8% in March according to
Platts estimates.

But rising prices appear to have reduced the group's resolve, with the
rate of compliance falling below 70% in July, when a Platts survey estimated
OPEC-11 output at 26.12 million b/d and total OPEC output at 28.62 million
b/d.