OPEC output down 120,000 barrels per day in January: Survey

Overall crude production by oil cartel OPEC fell again in January, dropping by 120,000 barrels per day to 29.68 million barrels per day (mmbpd) from December's 29.8 mmbpd, a Platts survey of OPEC and oil industry officials showed February 13.

That figure includes Iraqi production at 1.53 mmbpd. Excluding Iraq, which does not participate in OPEC output accords, the ten members with crude production quotas pumped an average 28.15 mmbpd in January, 100,000 bpd down from December's 28.25 mmbpd and just 150,000 bpd above their 28 mmbpd ceiling.

The latest estimates show OPEC volumes at their lowest level in almost a year and mark the second consecutive month that OPEC production has been below 30 mmbpd. Platts estimates last year showed volumes averaging 29.58 mmbpd in February, 29.83 mmbpd in March and 29.96 mmbpd in April, before rising to 30.02 mmbpd in May. Overall production held above 30 mmbpd until December 2005.

There were no increases to offset the production losses seen in six countries.

"Despite marginal falls in individual production levels, OPEC is still pumping nearly flat out in the face of high prices," said John Kingston.

Iraq, whose oil industry continues to be beset by infrastructural problems and sabotage-not to mention the occasional weather-related disruptions to exports-saw volumes fall by 20,000 bpd to 1.53 mmbpd.

Nigeria's output fell further after a series of militant attacks on oil installations in the Niger Delta, although the drop was partly offset by rising deepwater offshore production from Shell's Bonga field.

UAE production edged down as a result of Murban field maintenance. Saudi volumes also dropped slightly, to 9.48 mmbpd from 9.5 mmbpd in December, while Iran's production slipped by 30,000 bpd to 3.9 mmbpd. Indonesian production declined further in January to average 920,000 bpd over the month.

High oil prices dissuaded the group from giving any serious consideration to a cut in crude output at the recent January 31 meeting in Vienna, despite previous concerns about the projected fall in demand in the second quarter. Indeed, Saudi oil minister Ali Naimi said on the sidelines of the talks that he did not think there would be a need to cut output at all this year. OPEC is next scheduled to meet March 8 in Vienna. (*)

Country-by-country breakdown of production with figures in millions of b/d:

Country

Jan 06

Dec 05

Nov 05

Oct 05

Sept 05

Quota

Algeria

1.370

1.360

1.350

0.894

Indonesia

0.920

0.930

1.451

Iran

3.900

3.930

3.950

4.110

Iraq

1.530

1.550

1.700

1.800

1.990

N/A

Kuwait

2.540

2.550

2.247

Libya

1.660

1.650

1.500

Nigeria

2.400

2.420

2.450

2.306

Qatar

0.800

0.790

0.726

Saudi Arabia

9.480

9.500

9.550

9.500

9.560

9.099

UAE

2.480

2.500

2.490

2.480

2.444

Venezuela

2.600

2.610

3.223

Total

29.680

29.800

30.050

30.070

30.310

N/A

OPEC 10 (excluding Iraq)

28.150

28.250

28.350

28.270

28.320

28.000

OPEC output down 120,000 barrels per day in January: Survey

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