OPEC Raises September Output

OPEC raises oil output slightly in September
By Randy Fabi
Oct 2 (Reuters)

OPEC boosted its oil production in September as crude prices soared to record heights above $80 a barrel, a Reuters survey showed on Tuesday.

Ten OPEC members bound by output targets, all except Iraq and Angola, pumped 26.8 million barrels per day, up 60,000 bpd from August, according to the survey of oil firms, traders, OPEC officials and analysts.

The majority of the increase came from the world's biggest exporter Saudi Arabia, which last month convinced fellow OPEC members to open the taps amid surging oil prices.

The Organization of the Petroleum Exporting countries, source of more than a third of the world's oil, agreed to raise production by 500,000 bpd from Nov. 1.

"With these high prices, there is no doubt in my mind that OPEC is going to jump the gun and ship out more barrels before Nov. 1, but I haven't seen any proof yet," said Paul Tossetti, director of market analysis at Washington-based PFC Energy.

Oil has traded at around $80 a barrel for the past month, surging to a record high of $83.90 on Sept. 20. Total OPEC output rose to 30.62 million bpd from 30.37 million bpd in August as Iraq and Angola boosted their supplies, according to the survey. Iraq has issued three tenders in a month to sell Kirkuk oil from its northern fields, indicating exports may be stabilising after years of sabotage kept the pipeline mostly idle.

About 7.5 million barrels have been sold via the first two tenders. "That's an extra 200,000 to 300,000 barrels a day of crude out of Iraq. That is a major change and one to watch," Tossetti said.

Angola has also ramped up output with the start of its Plutonio oilfields. Angolan state oil company Sonangol said on Tuesday it commenced first production in September, with initial output at 80,000 bpd. OPEC is expected to give Angola, its newest member, an output target from Jan. 1.

Following is crude output in millions of barrels a day.

          Sept     Aug         Target
          output   output   output Nov 1*

Algeria      1.38     1.38         1.357
Indonesia    0.83     0.83         0.865
Iran         3.86     3.86         3.817
Kuwait       2.41     2.41         2.531
Libya        1.7      1.7          1.712
Nigeria      2.16     2.16         2.163
Qatar        0.8      0.8          0.828
Saudi Arabia 8.7      8.65         8.943
UAE          2.56     2.56         2.567
Venezuela    2.4      2.39         2.470
OPEC-10     26.8     26.74        27.253
Iraq         2.1      1.95
Angola       1.72     1.68
TOTAL       30.62    30.37

(R)-Revised. *Output targets for November 1 were published briefly on
OPEC's website, but were subsequently withdrawn without
explanation. OPEC quotas exclude condensate and natural gas liquids and
apply to supply rather than wellhead output, defined to exclude
movements to, but not sales from, storage. Saudi and Kuwaiti
data includes Neutral Zone. Saudi data excludes oil produced for
Bahrain. Venezuelan data includes upgraded synthetic oil.