Platts Survey: OPEC Output Dips to 29.3 Million Barrels of Oil Per Day in March

LONDON, April 9 /PRNewswire/ -- Platts – The 12-member Organization of the Petroleum Exporting Countries' (OPEC) crude oil production output averaged 29.3 million barrels per day (b/d) in March, down 10,000 b/d from February's estimated 29.31 million b/d, 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) pumped an average 26.85 million b/d, 100,000 b/d higher than the 26.75 million b/d estimated for February and some 2 million b/d more than their 24.845 million b/d output target.

"OPEC is unlikely to be too concerned about yet another increase in volumes from the 11 countries bound by quotas because oil prices are holding up well," said John Kingston, Platts global director of news. "Those production targets are looking increasingly irrelevant as the gap between the official ceiling and actual output widens to 2 million b/d, however, and it will be interesting to see how the group eventually deals with this credibility gap."

Compliance with this target, agreed in late 2008 and in effect since January 2009, has been declining as oil prices have firmed over the past year. Having peaked at close to 82% in March 2009, compliance fell to 47.7% in March 2010, Platts calculates.

International crude benchmarks are currently trading several dollars above the $70-$80 per barrel (/b) range that Saudi Arabian oil minister Ali Naimi has described as "perfect" and which OPEC appears to have adopted as its unofficial target. For 2010 to date, the group's basket of crudes has averaged $75.65/b, which is $14.59/b greater than the same period in 2009.

Output increases from Libya, Nigeria and the United Arab Emirates totalling 140,000 b/d were more than offset by 150,000 b/d of declines from Angola, Iran, Iraq, Kuwait and Venezuela.

The biggest single increase came from Nigeria, which boosted volumes by 120,000 b/d.  Iraq accounted for the biggest single decline as bad weather hit exports.

OPEC ministers last met in March, when they rubber-stamped the existing agreement, and will next 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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