OPEC-10 output up 880,000 BPD in June: Survey

OPEC's overall crude production soared towards 29 million barrels per day (MMBPD) in June as the oil exporters' cartel opened the taps to make good on a pledge to cool down overheated oil prices, a Platts survey of OPEC and oil industry officials showed July 13.

Including Iraq, output from the group's eleven members climbed by 680,000 BPD to 28.94-MMBPD in June from 28.26-MMBPD in May. Excluding Iraq, the ten members bound by quotas pumped 27.24-MMBPD in June, up 880,000 BPD from May's 26.36-MMBPD and more than 3.7-MMBPD in excess of their nominal 23.5- MMBPD ceiling which expired at the end of June.

"All signs point to OPEC retaining its current levels at the Vienna meeting that begins next week," said John Kingston, director of oil at Platts. "There has been no backtracking of the group's commitment to put more oil on to the market. The weakest link remains Iraq sabotage, which if it becomes chronic could eliminate from the market that little bit of breathing space that has been provided in the last several weeks by OPEC's additional production."

The June figure for the OPEC-10 was also well above the new 25.5-MMBPD ceiling agreed at a June 3 meeting in Beirut and which came into effect at the beginning of July. A further 500,000 BPD increment, also agreed in Beirut and scheduled for implementation at the beginning of August will take OPEC's official ceiling to 26-MMBPD next month but the OPEC-10 already exceeded this volume by 1.24-MMBPD in June.

OPEC's Vienna secretariat said in a report last month it expected OPEC-10 output to approach 27-MMBPD in June and total OPEC output, including that of Iraq, to be around 29.4-MMBPD.

Sabotage attacks on southern pipelines sent Iraqi volumes falling to 1.7- MMBPD from 1.9-MMBPD in May and 2.38-MMBPD in April.

Apart from Indonesia and Venezuela, which maintained output at May levels, all other members boosted output in June. The biggest single increase -- 500,000 BPD -- came from Saudi Arabia, whose oil minister Ali Naimi served notice in May that the kingdom would produce an average 9.1-MMBPD in June.

UAE production rose to 2.38-MMBPD from 2.26-MMBPD in May, an increase of 120,000 BPD. Survey participants noted increased volumes from Libya, whose output rose to 1.54-MMBPD in June from 1.47-MMBPD in May. Kuwaiti output rose to 2.35-MMBPD from 2.3-MMBPD in May. Survey participants noted that the emirate had restarted ahead of schedule a key crude gathering center which had been closed for maintenance. Other increases came from Algeria, Iran, Nigeria and Qatar. (*)

Country-by-country breakdown of production with figures in MMBPD:

Country	June 04	May 04	Apr 04	Mar 04	Quota-Apr 1	Quota-Jul 1	Quota-Aug 1
Algeria	1.200	1.170	1.150	1.150	0.750	0.814	0.830
Indonesia	0.970	0.970	0.980	0.980	1.218	1.322	1.347
Iran	3.960	3.920	3.880	3.900	3.450	3.744	3.817
Iraq	1.700	1.900	2.380	2.340	N/A	N/A	N/A
Kuwait	2.350	2.300	2.210	2.220	1.886	2.046	2.087
Libya	1.540	1.470	1.460	1.460	1.258	1.365	1.392
Nigeria	2.400	2.350	2.350	2.400	1.936	2.101	2.142
Qatar	0.780	0.760	0.740	0.750	0.609	0.661	0.674
Saudi Arabia	9.100	8.600	8.300	8.420	7.638	8.288	8.450
UAE	2.380	2.260	2.100	2.240	2.051	2.225	2.269
Venezuela	2.560	2.560	2.520	2.540	2.704	2.934	2.992
Total	28.940	28.260	28.070	28.400	N/A	N/A	N/A
OPEC 10 (excluding Iraq)	27.240	26.360	25.690	26.060	23.500	25.500	26.000