Bloomberg News

OPEC Crude Production Falls on Saudi Arabia, Nigeria, IEA Says

October 12, 2011

Oct. 12 (Bloomberg) -- OPEC members pumped less crude oil in September as Saudi Arabia cut its production from August’s 30-year high and Nigeria’s output was hindered by sabotage attacks, the International Energy Agency said.

Daily supply from the Organization of Petroleum Exporting Countries’ 12 members fell to 30.15 million barrels a day in September from 30.17 million in August, the Paris-based IEA said today in its monthly oil market report.

The decline was partly offset by the resumption of Libyan production, the IEA said. The North African country’s output averaged 75,000 barrels a day last month, and “production from four fields brought online so far reached an estimated 350,000 barrels a day in early October.”

Libyan “production now looks on track to reach an average 400,000 barrels a day in the fourth quarter of 2011, with year- end output closer to 600,000 barrels a day,” it said. That compares with an earlier forecast of 350,000 to 400,000 barrels a day by the end of this year, the IEA said.

Saudi Arabia, the world’s largest crude exporter, pumped 9.6 million barrels a day last month, compared with 9.8 million in August.

Nigeria daily supplies were 100,000 barrels less at 2.18 million barrels, “following a series of pipeline outages on the Bonny and Forcados network due to sabotage and oil theft”, the IEA said.

Kuwait, Iraq Production

Daily output from Kuwait and the United Arab Emirates rose to three-year highs. The two countries pumped 2.55 million barrels a day each last month. Iraqi production climbed to 2.74 million barrels a day, the highest level in almost 10 years, according to the IEA.

Production from the 11 OPEC members bound by quotas, excluding Iraq, dropped to 27.41 barrels a day in September from a revised 27.49 million in August. That implies a compliance rate of 39 percent with OPEC’s output targets, from 37 percent in August.

OPEC, provider of about 40 percent of the world’s crude, set its biggest-ever supply cuts in late 2008 amid a collapse in global demand. The decision capped production at 24.845 million barrels a day for all members except Iraq, which is exempt from the quota system. Members have largely exceeded quotas this year as they sought to take advantage of higher global crude prices earlier this year and to make up for the lack of Libyan crude.

Compliance percentages are based on combined output from the 11 members that committed to reduce from a base production rate in September 2008 of 29.045 million barrels a day.

OPEC’s members are Algeria, Angola, Ecuador, Iran, Iraq, Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, the United Arab Emirates and Venezuela.

--Editors: Rob Verdonck, Raj Rajendran

To contact the reporter on this story: Sherry Su in London at lsu23@bloomberg.net

To contact the editor responsible for this story: Stephen Voss at sev@bloomberg.net


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