OPEC overproduction 2.67m bpd in September

OPEC overproduction 2.67m bpd in September

Dow Jones, Manama, Bahrain

Overproduction of crude oil by members of the Organization of
Petroleum Exporting Countries, excluding Iraq, in September was
estimated at 2.67 million barrels a day, or 12.3 percent over
quota, the weekly Middle East Economic Survey reported in its
latest issue to be released Monday.

MEES estimated that oil production by the OPEC 10 rose by
610,000 barrel per day in September to 24.370 million barrel per
day from a month earlier. This compares with the official output
quota agreement of 21.701 million barrel per day.

Total production of the group, including Iraq, rose 930,000
barrel per day to 26.19 million barrel per day in September from
25.26 million barrel per day in August, underpinned by a sharp
rebound in Iraqi exports driven by the removal of surcharges by
Iraq authorities at the beginning of last month, MEES said.

The sharp rise in OPEC 10 production was due to increases
across the board, with the exception of Indonesia and the United
Arab Emirates, MEES added. The remaining eight countries produced
oil in September at their highest level so far this year.

Taken collectively, the data shows that quota compliance
continues to deteriorate, with September marking the seventh
consecutive month where oil production has increased for the
OPEC 10, the newsletter said.

The increase for most countries continues to be gradual, but
September saw a particularly sharp jump in output by Iran and
Venezuela.

MEES said Iran's September production was 3.7 million barrel
per day, comprising exports of 2.25 million barrel per day, while
deliveries to domestic refineries accounted for 1.45 million
barrel per day.

Venezuelan production, which includes crude oil and synthetic
crude, rose to 3.1 million barrel per day in September, building
on the substantial increase seen the previous month.

Iraq, which is not party to OPEC quotas, saw its September
production rise to 1.82 million barrel per day amid rising
exports after the suspension of marketing surcharges and the
resumption of some of its cross-border trading that had dwindled
in recent months.

MEES said that Iraqi oil exports to Syria are now running at
200,000 barrel per day, with truck deliveries to Turkey having
restarted by government-controlled companies and averaging 40,000
barrel per day in the month.

These, combined with 20,000 barrel per day of sales to Persian
Gulf customers, 110,000 barrel per day of sales to Jordan and
350,000 barrel per day of domestic consumption accounts for the
country's higher volumes.

The MEES survey showed that the countries that have publicly
declared their intent for an upwards review of their quota
allocation are exceeding their current quotas by the largest
amount in percentage terms.

Thus, Algeria, Venezuela and Nigeria exceeded their quotas by
30 percent, 24 percent and 12 percent respectively. In volume
terms, Saudi Arabia overproduced by 647,000 barrel per day,
closely followed by Venezuela, at 603,000 barrel per day and
Iran by 514,000 barrel per day.