Platts Survey: OPEC Output Dips to 29.21 Million Barrels of Oil Per Day in April

LONDON, May 12 /PRNewswire/ -- Platts --  The 12-member Organization of the Petroleum Exporting Countries' (OPEC) crude oil production output averaged 29.21 million barrels per day (b/d) in April, 90,000 b/d lower than the 29.3 million b/d estimated for March, according to a just-released Platts survey of OPEC and oil industry officials and analysts.

Excluding Iraq, which does not participate in OPEC output agreements, the 11 members bound by quotas (OPEC-11) increased output by 40,000 b/d to 26.89 million b/d in April from 26.85 million b/d in March, the survey showed.

Kuwait, Libya, Nigeria, Saudi Arabia and the United Arab Emirates increased production by a combined 70,000 b/d, but this volume was more than offset by decreases totalling 160,000 b/d from Iraq and Angola.

Iraqi supply was down by about 130,000 b/d as bad weather hit exports.

"If it were not for Mother Nature disrupting Iraqi exports, there might have been another 100,000 b/d on the market, and it's a market that is showing signs of a continuing overhang in crude supply," said John Kingston, Platts global director of news. "OPEC is producing well over what the International Energy Agency says is the demand for OPEC oil needed to keep markets stable, and that excess is going into inventory. The stock build is showing up in statistics, and it is showing up in prices. It is a challenge OPEC may be facing for several months, and it isn't scheduled to meet to talk about it until October."

The latest estimates show that the OPEC-11 overproduced their now largely notional 24.845 million b/d target by 2.05 million b/d.

This target, based on output cuts totalling 4.2 million b/d and agreed upon in late 2008, has been in place since January 2009. Compliance, which peaked at nearly 82% in March 2009, was relatively high initially but diminished as oil prices rose. The latest estimates suggest an overall compliance rate of just 51.3% last month.

OPEC ministers last met in March, when they rubber-stamped the existing agreement, and are next scheduled to meet on October 14 in Vienna.

For production numbers by country, view this table (you may be prompted for a cost-free one-time-only log in registration).

Platts OPEC and oil experts are available for media interviews; please consult Platts Media Center to schedule an interview. For other oil, energy and related information, visit Platts online at www.platts.com.

About Platts: Platts, a division of The McGraw-Hill Companies (NYSE: MHP), is a leading global provider of energy and commodities information. With a century of business experience, Platts serves customers across more than 150 countries. An independent provider, Platts serves the oil, natural gas, electricity, emissions, nuclear power, coal, petrochemical, shipping, and metals markets from 17 offices worldwide. Platts' real-time news, pricing, analytical services and conferences help markets operate with transparency and efficiency. Traders, risk managers, analysts, and industry leaders depend upon Platts to help them make better trading and investment decisions. Additional information is available at http://www.platts.com.

About The McGraw-Hill Companies:

Founded in 1888, The McGraw-Hill Companies (NYSE: MHP) is a global information and education company providing knowledge, insights and analysis in the financial, education and business information sectors through leading brands including Standard & Poor's, McGraw-Hill Education, Platts, and J.D. Power and Associates. The Corporation has more than 280 offices in 40 countries. Sales in 2009 were $5.95 billion. Additional information is available at http://www.mcgraw-hill.com.  

SOURCE Platts

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