Business | Oil & Gas
Saudi Arabia and Venezuela to pull Opec output down
Opec oil output will fall by 200,000 barrels per day in July because of lower production from top world exporter Saudi Arabia and from Venezuela, consultant Petrologistics said yesterday.
- Reuters
- Published: 00:00 July 25, 2006
London: Opec oil output will fall by 200,000 barrels per day in July because of lower production from top world exporter Saudi Arabia and from Venezuela, consultant Petrologistics said yesterday.
Conrad Gerber, head of the Geneva-based consultancy, estimated that the Organisation of the Petroleum Exporting Countries is pumping 29.9 million bpd in July, down from a revised 30.1 million bpd in June.
The estimate suggests supply from Saudi Arabia has yet to rebound after the kingdom cut output in April as refinery maintenance and rising inventories curbed demand. Most Opec members were pumping near full tilt earlier this year to cool prices.
"Saudi Arabia is at 9 million bpd flat and possibly even less by the end of the month," Gerber said. "Venezuela is also down."
According to Petrologistics, Saudi output is set to fall from 9.15 million bpd in June. Venezuelan output is forecast to slip about 250,000 bpd to 2.3 million bpd in July because of maintenance at synthetic crude plants, Gerber said.
But an increase from Iraq and higher-than-expected supply in Iran are offsetting lower Saudi and Venezuelan output, according to Petrologistics.
Iran, Opec's second-largest producer, is expected to pump 4 million bpd in July, about the same as in June, as it shifts unsold barrels of mainly heavy crude.
"Iran seems to be getting rid of its oil in storage, so they are well up on previous months," Gerber said.
In an estimate last month, Gerber put Iranian output during June at 3.8 million bpd.
The estimate indicates output by the 10 Opec members bound by formal supply limits, all except Iraq, remained below their 28 million bpd target.
Buyers of Saudi oil have said they expect the kingdom to hold output near 9 million bpd through August as rivals help meet higher seasonal demand during the third quarter.
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