Share

Opec oil output rises as members stand firm

London - Opec's oil supply has risen this month due to more Angolan exports and steady to higher output in Saudi Arabia and other Gulf producers, a Reuters survey showed, a sign key members are standing firm in refusing to prop up prices.

The Organisation of the Petroleum Exporting Countries (Opec) at a November meeting decided to focus on market share rather than cutting output, despite concerns from members such as Iran and Venezuela about falling oil revenue.

Supply from Opec has averaged 30.37 million barrels per day (bpd) in January, up from a revised 30.24 million bpd in December, according to the survey based on shipping data and information from sources at oil companies, Opec and consultants.

At the November 27 meeting, Opec retained its output target of 30 million bpd, sending oil prices to a four-year low close to $71 a barrel. Crude since fell to a near six-year low of $45.19 on Jan. 13 and was trading above $49 on Friday.

Opec Secretary General Abdulla al-Badri, speaking in London on Monday, defended the no-cut strategy and said prices may have reached a floor, despite oversupply. Other Opec delegates have since echoed this message.

"Prices are stabilising," said a delegate from a Gulf producer. "But the world economy is not very strong and stocks are too high."

The largest boost this month has come from Angola, which pumped 1.80 million bpd and exported about 57 cargoes, up 160 000 bpd from December. Output would have been higher without some cargo delays, including of new crude Sangos.

Opec's other West African producer, Nigeria, also managed to boost exports, the survey showed, although the increase was restrained by outages of the Forcados and Nembe Creek pipelines.

Smaller increases have come from Kuwait, Qatar and the United Arab Emirates.

Output in top Opec exporter Saudi Arabia has been flat to slightly higher, sources said. Saudi Aramco chief executive Khalid al-Falih said on Tuesday production was currently at 9.8 million bpd, although it was unclear if that was the daily rate or the January average.

"Steady is what I'm seeing," said an industry source who tracks Saudi supply. "Exports are a bit lower and this is most likely offset by slightly higher refinery runs."

The largest reduction this month has come from Iraq, where southern oil exports slipped from December's record high and flows from northern Iraq also declined, according to loading data and an industry source.

Exports are likely to hit new records in coming months, technical problems and weather delays permitting. A loading programme schedules record southern exports in February.

Opec's other country with a notable decline in output this month is Libya, where ports and oilfields have been shut due to fighting and supply fell further in January to 350 000 bpd.

We live in a world where facts and fiction get blurred
Who we choose to trust can have a profound impact on our lives. Join thousands of devoted South Africans who look to News24 to bring them news they can trust every day. As we celebrate 25 years, become a News24 subscriber as we strive to keep you informed, inspired and empowered.
Join News24 today
heading
description
username
Show Comments ()
Rand - Dollar
18.96
-0.3%
Rand - Pound
23.91
-0.1%
Rand - Euro
20.48
-0.1%
Rand - Aus dollar
12.34
+0.1%
Rand - Yen
0.13
-0.2%
Platinum
896.95
-1.0%
Palladium
1,000.11
-0.2%
Gold
2,194.20
-0.0%
Silver
24.51
-0.6%
Brent-ruolie
86.09
-0.2%
Top 40
68,007
+0.5%
All Share
74,221
+0.4%
Resource 10
56,323
+1.2%
Industrial 25
103,552
+0.3%
Financial 15
16,559
+0.2%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE
Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders