Oil gushes faster from O.P.E.C.

Press, 18 June 1986, Page 10

Oil gushes faster from O.P.E.C.

NZPA-Reuter London O.P.E.C. oil output is heading towards a high of 19 million barrels a day as several of its members, mainly in the Middle East, raise their production above agreed limits, the “Petroleum Intelligence Weekly” reports. The authoritative oil industry newsletter says that Iran and Iraq were managing to boost their volumes despite the Gulf war, and Saudi Arabia, Kuwait and Libya were also contributing to the upsurge. The latest output estimate is far higher than the 16.3 million barrels daily over-all ceiling for the current quarter agreed on by the Organisation of the Petroleum Exporting Countries Ministers at an emergency conference only two months ago. The Ministers will meet again on June 25 in Yugoslavia, and the newsletter’s figures, if confirmed, would be certain to complicate their task of reallocating production quotas between the 13 O.P.E.C. States. . Existing O.P.E.C. output and price accords have been virtually abandoned because the continuing

glut of oil has kept prices down around SUSI2 a barrel compared with SUS3O in November. The newsletter said it had heard from the National Iranian Oil Company that Iran’s June output was set to rise to near 2.4 million barrels daily from 1.8 million in April arid May, barring more attacks on tankers serving its Sirri Island terminal, though others saw that as optimistic. “Petroleum Intelligence Weekly” said Iraq was now producing near to 1.9 million barrels daily after lower output in April and May. Saudi Arabia was reported to be producing 4.6 million barrels daily, with big buyers getting higher discounts to buy extra volumes. Saudi Arabia’s rationale for the rise was that it was compensating for lower output earlier this year. Kuwait appeared to have boosted output, some prices being equivalent to as little as SUSB a barrel, it said. Libya also appeared to be selling as much as possible before American companies ceased activities there on June 30, output swelling to 1.3 million barrels a day.