Bloomberg Anywhere Bloomberg Professional About Bloomberg


 
OPEC Oil Output Fell 0.8% in July, Survey Shows (Update1)

By Diane Munro and Mark Shenk

Aug. 4 (Bloomberg) -- Crude-oil production by members of the Organization of Petroleum Exporting Countries declined 0.8 percent in July, a Bloomberg News survey showed.

OPEC oil output fell an average 250,000 barrels a day to 29.61 million barrels a day, according to the survey of oil companies, producers and analysts. June production was revised 60,000 barrels a day lower. OPEC's 11 members pumped 30.54 million barrels a day in October 2004, the highest since 1979.

``Saudi Arabia, Iran, Kuwait and Nigeria all posted minor declines in output,'' said Tim Evans, an energy analyst at Citigroup Global Markets Inc. in New York. ``It's unusual to see so many members' output move in the same direction.''

Saudi Arabia, OPEC's biggest producer and the world's top oil exporter, cut output by 70,000 barrels to an average 9.15 million barrels a day, according to the survey. It was the biggest decline of any OPEC member and the country's lowest output since January, 2005.

Iranian production fell 50,000 barrels a day to an average 3.8 million and Kuwait cut output by 40,000 barrels a day to an average 2.46 million, the survey showed. The Persian Gulf nations reduced production in response to weaker customer demand for their high-sulfur oil grades.

Nigerian Output

Nigerian output in July fell 50,000 barrels to an average 2.2 million barrels a day, the survey showed. Africa's biggest oil producer is losing out on exports because of violence and damage to pipelines. Production has declined this year as the Movement for the Emancipation of the Niger Delta has escalated attacks on oil facilities.

Indonesian output fell 10,000 barrels to an average 900,000 barrels a day in July because of technical problems and maintenance work. The decline left output at a 35-year low.

Iraqi output last month rose 40,000 barrels a day to 2.13 million barrels a day, the highest since October 2004, according to the survey. The Persian Gulf country was the only OPEC member to increase oil production in July.

``There has been a shift in the targets of violence in Iraq,'' Evans said. ``A year or two ago oil facilities were a major focus of insurgent attacks. Now attention is focused on the sectarian struggle. Instead of attacks on pipelines we are seeing attacks on soft targets such as mosques and marketplaces.''

Iraqi Exports

Total Iraqi exports averaged 1.68 million barrels a day in July, up 40,000 barrels daily from June. Oil exports from the southern port of Basrah, the country's main export terminal, fell an average 20,000 barrels a day to 1.51 million barrels daily. There were no exports from the smaller Khor al Amaya terminal, which is also located on the Persian Gulf.

Oil exports from the north ran at an averaged 150,000 barrels a day in July, up from 105,000 in June. Exports from the north resumed in June for the first time since September. Attacks on a pipeline to the export terminal in Ceyhan, Turkey, from the oil-producing region of Kirkuk had disrupted the flow of oil since September.

Leaks in Kirkuk on July 7 halted the flow of oil from the north. One of two damaged pipelines was repaired last month. The flow of oil won't resume until both are repaired.

Iraq exported 12,000 barrels a day to Syria as part of a swap of crude oil for refined petroleum products.

To contact the reporters on this story: Mark Shenk and Diane Munro in New York at mshenk1@bloomberg.net.

Last Updated: August 4, 2006 16:25 EDT

Sponsored links