OPEC'S Oil Production Slips in December but Surpasses Target According to a Platts Survey

OPEC'S Oil Production Slips in December but Surpasses Target According to a Platts Survey

January 15, 2007

    LONDON, Jan. 15 /Xinhua-PRNewswire/ -- Platts The 10
OPEC members bound by the group's output agreements
produced an average 27 million barrels per day (b/d) in
December, down 70,000 b/d from November, but some 700,000
b/d above its current output target, a Platts survey showed
Friday.

    Including Iraq, which does not participate in OPEC's
production agreements, the 11-member group produced 28.9
million b/d in December, 160,000 b/d less than November's
29.06 million b/d. Rough weather hit Iraqi exports in
December.

    The latest survey puts OPEC-10 production 700,000 b/d
above the 26.3 million b/d production target agreed to at
emergency talks in the Qatari capital Doha in October and
which came into effect November 1. 

    That target is based on a 1.2 million b/d cut in
physical production which OPEC said was from an estimated
September production level of 27.5 million b/d. A previous
Platts survey estimated OPEC's September output at 27.81
million b/d. OPEC did not list individual target output
levels under the 26.3 million b/d, although it did give
details of individual cut volumes.

    Among the OPEC-10, only three countries reduced output
in December, the survey showed. United Arab Emirates (UAE)
production fell from 2.55 million b/d to 2.5 million b/d.
Saudi Arabian output dipped 10,000 b/d to 8.79 million b/d,
while Libyan production was also down 10,000 b/d at 1.7
million b/d.

     OPEC's target output level is slated to fall to 25.8
million b/d on February 1 following the group's December 14
agreement in Abuja, Nigeria, to expand the Doha cut by
500,000 b/d to 1.7 million b/d.

    "After a significant 660,000 b/d drop in
production in November, it is apparent OPEC's output in
December largely leveled off," John Kingston, global
director of oil for Platts, said. "OPEC will need to
achieve better compliance with its November 1 cut, and hope
for solid compliance with the upcoming February 1 cut, as it
seeks to stem a roughly 15% drop in crude prices since the
start of this year."  

    Country     December   November   October    September 
 Nov Cut Agreed

    Algeria       1.350     1.350      1.370       1.360   
     0.059
    Indonesia     0.860     0.860      0.860       0.860   
     0.039
    Iran          3.850     3.850      3.900       3.950   
     0.176
    Iraq          1.900     1.990      2.020       2.140   
       N/A
    Kuwait        2.460     2.460      2.530       2.540   
     0.100
    Libya         1.700     1.710      1.730       1.720   
     0.072
    Nigeria       2.230     2.230      2.300       2.300   
     0.100
    Qatar         0.800     0.800      0.830       0.830   
     0.035
    Saudi Arabia  8.790     8.800      9.070       9.100   
     0.380
    UAE           2.500     2.550      2.600       2.600   
     0.101
    Venezuela     2.460     2.460      2.540       2.550   
     0.138
    Total        28.900    29.060     29.750      29.950  
    OPEC-10      27.000    27.070     27.730      27.810   
     1.200


    For more information, please contact:

     Kathleen Tanzy 
     Tel: [phone]

    Asia: 
     Casey Yew
     Tel: [phone]
 
    Europe: 
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SOURCE  Platts