OPEC oil supply rises in Oct, first rise since July

Monday, 8 November 2010 04:24 -     - {{hitsCtrl.values.hits}}

Reuters: OPEC crude oil supply rose in October because of higher supply from Angola and smaller increases from other members, reducing adherence to agreed output targets, a Reuters survey showed on Friday.

Supply from the 11 members of the Organization of the Petroleum Exporting Countries with output targets, all except Iraq, has averaged 26.79 million barrels per day (bpd) this month, up from 26.63 million bpd in September, according to the survey of oil companies, OPEC officials and analysts.

The increase mainly reflects a reduced impact on Angolan supply from maintenance work. Angola and other OPEC members have benefitted this year from being able to pump more oil without undermining prices, which have largely traded within Saudi Arabia’s $70-$80-a barrel comfort zone.

“The primary reason for the increase is Angola as well as smaller increases from Nigeria and Iran, but this is largely offset by the drop in Iraq,” said Daniel Gerber of Petrologistics, a Geneva-based oil consultant.

OPEC left its oil output target unchanged at an Oct. 14 meeting, as it has since making a record supply curb of 4.2 million bpd in December 2008 to combat lower demand and prices. Many members have been informally boosting supply since 2009 as prices and demand recovered.

The survey found that the 11 members bound by that agreement completed 54 percent of the reduction in October, down 3 percentage points from September. With two days left in October, the final figures for the month may change.

Total OPEC supply including Iraq was up 70,000 bpd, according to the survey. It fell in September and August.

Oil traded lower below $82 a barrel on Friday.

Angolan output has rebounded this month after maintenance work and technical glitches at some oil installations reduced supply in September.

Several of the country’s crude streams are shipping more barrels this month, including Girassol, Nemba, Dalia and Plutonio, according to loading schedules.

The United Arab Emirates boosted supply slightly as it increased allocations of Murban and other crudes. Iranian output also climbed as higher supplies to Asia -- including discharges of oil that had been stored on tankers -- offset steady to lower supplies to Europe.

Nigeria boosted supplies by 20,000 bpd, continuing its recovery with the decline in militant attacks on oil infrastructure in the Niger Delta.

Among the countries with lower output, OPEC’s top exporter, Saudi Arabia, trimmed supply as it used less crude oil in domestic power plants, a source in the survey said.

Saudi Arabia, Kuwait and the UAE remain among OPEC’s most compliant with their output targets. They also have the most scope to boost supplies, analysts say, since they sit on much of the group’s unused production capacity..