Survey says OPEC production rises by 870,000 bpd in July

Organization of Petroleum Exporting Countries (OPEC ) produced an overall 26.94 million barrels per day (bpd) of crude oil in July, up 870,000 bpd from June's 26.07 million bpd, according to OPEC and oil industry officials surveyed by Platts.

The increase was mainly a result of Iraq's resumption of crude exports in early July following a stoppage of more than a month over proposed changes to the UN's oil-for-food program. The changes were not implemented.

Iraq, whose exports are controlled by the UN, does not participate in OPEC output agreements. Neither does it have a production quota under the 24.201 million bpd ceiling, which the other 10 members agreed to in March and which will be lowered by 1 million bpd to 23.201 million bpd on September 1.

The OPEC 10 produced an average 24.87 million bpd in July, 100,000 bpd down on June's 24.97 million bpd but some 669,000 bpd in excess of the ceiling, the survey showed.

Increases totaling 1.01 million bpd were partly offset by decreases totaling 140,000 bpd. Four countries--Indonesia, Kuwait, Nigeria and Saudi Arabia--reduced production. Iraq produced an average 2.07 million bpd in July, up 970,000 bpd on June. Iran and Venezuela also increased output, by 30,000 bpd and 10,000 bpd respectively.

The 80,000 bpd drop in Nigerian output was attributed to various force majeures and a strike at Shell. Saudi Arabia produced an average 8.01 million bpd over the month, 40,000 bpd down on June's 8.05 million bpd but still 145,000 bpd in excess of its 7.865 million bpd output quota. Indonesia was the only member to produce within its quota.

OPEC decided to leave output quotas unchanged when it met July 3, but announced July 25 after telephone consultations between ministers to reduce production by 1 million bpd to 23.201 million bpd from Sept. 1. (*)