Most OPEC producers pumping over quota: MEES report
Most OPEC producers pumping over quota: MEES report
Agencies, Dubai/Tehran
Most members of the OPEC oil cartel are producing over quota,
the Middle East Economic Survey (MEES) reports, noting that
overall January output was more than one million barrels per day
above target.
Production by the 10 countries, excluding Iraq, dropped for
the sixth consecutive month, falling by 960,000 bpd to 22.81
million bpd last month, according to Monday's edition of the
industry newsletter.
However, that represented an excess of 1.1 million bpd over
the new ceiling agreed in Cairo on Dec. 28 in a bid to shore up
flagging world prices.
"Most countries exceeded their assigned quotas," MEES says.
"It is understood that much of the January loading program was
only modestly impacted by the new cuts because of the end-
December quota decision, but that this issue will be addressed
more forthrightly in February," the weekly notes.
MEES sources said Iranian production in January rose to 3.43
million bpd from 3.4 million bpd in December.
"Preliminary information indicates that Mexican and Norwegian
compliance with their pledges has been good, while the jury is
still out on Russia," the Cyprus-based survey says.
Major independent producers including Russia, Norway and
Mexico agreed to join the cartel's cuts after a 30-percent slide
in oil prices owing to a global economic slowdown caused by the
Sept. 11 attacks on the United States.
Organization of Petroleum Exporting Countries (OPEC) Secretary
General Ali Rodriguez and Algerian Energy Minister Chakib Khelil
are due in Moscow next month to urge Russia not to boost oil
production, amid analysts' expectations that it will pump more
crude from March.
MEES also reports that Iraq's January production increased to
2.31 million bpd in January -- 1.55 million bpd under the UN's
oil-for-food prgramme and 760,000 bpd for domestic refineries and
cross-border trade -- compared to two million bpd in December.
Meanwhile, Iran said on Saturday it was not satisfied with the
current OPEC basket price for crude oil which is below the lower
limit of the cartel's official $22-28 range, and urged producers
to cooperate to shore up prices.
"Our last decision is still valid...$22 is our last decision
and it is valid in our point of view," Oil Minister Bijan
Zanganeh told Reuters on the sidelines of a regional energy
conference in Tehran.
OPEC's basket rose on Thursday to $19.41 per barrel from
$19.25 per barrel a day earlier, but remained below the $22 lower
end of the cartel's official price target range.
Zanganeh also said he believed that OPEC's oil output would
not be altered before a ministerial meeting in Vienna scheduled
on March 15.