Low Saudi, Nigeria volumes hit Opec output
London, October 11, 2011
The crude oil output from Organization of the Petroleum Exporting Countries (Opec) fell by 130,000 barrels per day (b/d) to 30 million b/d in September mainly due to lower volumes from Saudi and sabotage-hit Nigeria, according to a new survey.
The drops in Saudi and Nigerian output, along with other small dips in the UAE, Kuwait and Iran, more than offset increases totaling 150,000 b/d from Angola, Libya and Iraq, said Platts in its just-released survey of Opec and oil industry officials.
Platts is a leading global provider of energy, petrochemicals and metals information and a premier source of benchmark prices for the physical and futures markets.
Reduced use of crude in power generation was offered as one reason for the lower estimates of Saudi production, the survey said.
However, given the recent downtrend in crude prices and expectations that Libyan production will ramp up, some participants suggested that Saudi Arabia's October output might see a further dip.
'The main factor to watch in the next few months is just how much Libyan crude comes back on the market, and whether other producers need to make way for it,' said John Kingston, Platts global director of news.
'Long-term, there's one thing to note: there are a few examples of oil-exporting countries that have gone through enormous change recently - Iran, Iraq, Nigeria and Venezuela - and had their production return to pre-turmoil levels.'
'Libya would be challenging the odds to get back to its original 1.6-million-b/d production level,' he added.
Libya's current production is estimated at around 350,000 b/d following the resumption of output in recent weeks from a handful of fields, the Platts survey said.
These include the fields operated by Benghazi-based Agoco, the Al-Jurf offshore field operated jointly by France's Total and the National Oil Corporation, and the Abu Attifel field operated by the Mellitah Oil Company joint venture with Italy's Eni, it added.-TradeArabia News Service