The Organization of the Petroleum Exporting Countries (OPEC) produced 25.19 million barrels a day (b/d) of crude in February 2002, as Iraqi volumes rose to their highest level since November, according to oil industry officials surveyed by Platts Global Energy information and services provider.
Excluding Iraq, whose exports are controlled by the United Nations (UN) under the oil-for-food program, the other 10 OPEC members managed to shave a further 60,000 b/d off their combined output to pump an average of 22.69-million b/d in February—989,000 b/d in excess of their self-imposed 21.701-million b/d production ceiling.
Iran and Libya increased production by 50,000 b/d and 10,000 b/d respectively, offsetting half of the 120,000 b/d of decreases by Algeria, Kuwait, Nigeria and Saudi Arabia. Indonesia, Qatar, United Arab Emirates (UAE) and Venezuela maintained their January output levels in February, and all 10 members with quotas exceeded them.
The 180,000 b/d increase in overall OPEC output was attributable largely to Iraq, whose production recovered by 240,000 b/d to 2.5-million b/d in February from 2.26-million b/d in January. It was Baghdad's highest monthly output level since November.
"Despite this increase in overall OPEC supply, the price of crude not only did not fall, it rose by a significant amount in the last month," said John Kingston, Platts global director of oil.
Kingston noted that on February 4, Platts' daily assessment for West Texas Intermediate sunk to $20. On March 11, by contrast, it stood at $24.25.
"The one factor in the market that appears to be having an impact is the Russian plan to restrain exports in support of OPEC. While it has not been flawless, the glut of crude within the Russian domestic market itself is testament to the fact that it has worked to some degree, and appears to have partly offset the rising level of output from OPEC as a whole, including Iraq."
Kingston also stated that the most recent monthly report of the International Energy Agency revealed the group has yet again lowered its forecast for demand growth during the rest of 2002, and rising OPEC output is moving into a market that may feature softer consumption levels. OPEC's current pact is scheduled to run to the end of June and is expected to be rubber-stamped at the March 15 ministerial conference in Vienna. — (menareport.com)
© 2002 Mena Report (www.menareport.com)
