LONDON -- The Organization of Petroleum Exporting Countries produced 25.19 million barrels per day of crude in February as Iraqi volumes rose to their highest level since November, according to OPEC and oil industry officials surveyed by energy consulting and research firm Platts.
Excluding Iraq, the exports of which are controlled by the United Nations under the oil-for-food program, the other 10 OPEC members managed to shave a further 60,000 bpd off their combined output to pump an average of 22.69 million bpd in February--989,000 bpd in excess of their self-imposed 21.701-million-bpd production ceiling. Iran and Libya increased production by 50,000 bpd and 10,000 bpd, respectively, offsetting half of the 120,000 b/d of decreases by Algeria, Kuwait, Nigeria and Saudi Arabia.
Indonesia, Qatar, UAE and Venezuela maintained their January output levels in February, and all 10 members with quotas exceeded them. The 180,000-bpd increase in overall OPEC output was attributable largely to Iraq, the production of which recovered by 240,000 bpd to 2.5 million bpd in February from 2.26 million bpd 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.
“The one factor in the market that appears to be having an impact is the Russian plan to restrain exports in support of OPEC,” said Kingston. “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 Mar 15 ministerial conference in Vienna, said Platts.
