OPEC boosted output 80,000 barrels a day in September, according to Platts

An exclusive survey by Platts, the world's premier energy market information service and a division of The McGraw-Hill Companies, shows that OPEC member nations boosted overall output to 29.13 million barrels per day (b/d) in September, an increase in production of approximately 80,000 b/d above August.

"An analysis of recent output shows 8 out of 10 OPEC member nations are producing at or close to their full capacities,'' commented John Kingston, Global Director of Oil at Platts. The only two countries with significant unused capacity are Saudi Arabia and the United Arab Emirates. "While that does not necessarily signal a price increase in the future, any industry operating at that high level of capacity would be buffeted by upward price pressure. The wild card in the equation remains Iraq, which is under UN restrictions but whose production is badly needed by the market.''

OPEC Production, July-September, 2000

Country Sept. Aug. July Quota New Quota

Algeria 0.84 0.83 0.83 0.811 0.8366

Indonesia 1.31 1.32 1.31 1.317 1.3586

Iran 3.70 3.74 3.73 3.727 3.8438

Iraq 2.83 2.94 2.55 N/A N/A

Kuwait 2.17 2.18 2.14 2.037 2.1010

Libya 1.43 1.43 1.42 1.361 1.4042

Nigeria 2.05 2.06 2.03 2.091 2.1566

Qatar 0.71 0.71 0.71 0.658 0.6788

Saudi Arabia 8.86 8.59 8.41 8.253 8.5122

UAE 2.30 2.32 2.30 2.219 2.2894

Venezuela 2.93 2.93 2.92 2.926 3.0188

Total 29.13 29.05 28.35

OPEC 10 26.30 26.11 25.80 25.40 26.20

A 270,000 b/d output surge by Saudi Arabia, supplemented by a 10,000 b/d increase from Algeria, was partly offset by declines totaling 200,000 b/d.

Iraq, whose volumes fell to 2.83 million b/d from 2.94 million b/d in August, accounted for the biggest single output dip -- 110,000 b/d. Most other members showed decreases, including Iran, which averaged 3.7 million b/d in September, down 40,000 b/d from August's 3.74 million b/d.

Excluding Iraq, OPEC's 10 members, which agreed to cap output at 25.4 million b/d from July 1, pumped an average 26.3-mil b/d -- 190,000 b/d up on August's 26.11 million b/d, but 900,000 b/d above the agreed ceiling.

Indeed, the OPEC 10 were already, in September, producing 100,000 b/d in excess of their new 26.2 million b/d ceiling, which did not come into effect until October 1. But, as one OPEC delegate said October 9, with oil prices staying high, quota compliance is unlikely to be a major issue ``for the time being, for the fourth quarter.''

Having already raised output levels in March and June, ministers agreed to a further 800,000 b/d increase at the September 10-11 conference in Vienna. They said a further increase was possible at the upcoming November 12 meeting.

Several members in September had already boosted production above their new quota levels, which had yet to take effect. These included Kuwait -- although infrastructural constraints have continued to impose a temporary limit on production -- Libya, Qatar, Saudi Arabia, and the UAE.

Saudi Arabia in September pumped an average 8.86 million b/d, some 318,000 in excess of its post-Oct 1 quota and more than 600,000 b/d in excess of the 8.253 million b/d quota that was still effective in September. Iranian production of 3.7 million b/d was well within Tehran's 3.727 million b/d quota. Some industry officials have questioned whether Iran will be able to meet its new 3.84 million b/d quota, which became effective October 1. (*)