OPEC Output to Hit Highest in 13 Months

OPEC oil supply is rising in January to the highest in 13 months, a survey showed, further reducing compliance with output targets that members said they would stick to at a meeting in December 2009.

Supply from the 11 members of OPEC with output targets, all except Iraq, will average 26.71 million bpd, up from a revised 26.65 million bpd in December 2009, according to the survey of oil firms, OPEC officials and analysts.

The survey implies OPEC has made 55% of promised supply cutbacks versus 57% in December 2009. With oil trading near US$74 a barrel, within the US$70 to US$80 range favored by many members, analysts see little prospect of closer adherence.


Supply from the OPEC-11 was 1.87 million bpd higher in January than their target of 24.84 million bpd, the survey found, meaning the group lowered output by 2.33 million bpd of the promised curbs.

That gave the 55% compliance rate, which is down sharply from its 81% peak reached in April and March according to estimates. With January 2010 ending, the final figures for the month may change.

Output from all 12 OPEC members rose to 29.20 million bpd, the highest since December 2008 because of a small increase in supply from Iraq.

Output from Angola has climbed in January 2010 by 40,000 bpd, the largest single rise among the OPEC-11, keeping the country the least compliant in percentage terms with output targets. - Gulf Times