OPEC doesn’t need to cut output as crude at about $100 a barrel will entice marginal producers to pump more, adding supply and stabilizing markets, according to Iraq’s Deputy Prime Minister.
“We’d rather see more countries supplying the world with crude and $100 a barrel seems to be the right level,” Hussain Al-Shahristani said at the World Energy Congress in Daegu, South Korea, today. “The world is satisfied with current OPEC production and we don’t see any reason, really, to change the production targets.”
The Organization of Petroleum Exporting Countries, which pumps about 40 percent of the world’s crude, is scheduled to meet in December to review output levels. Current prices are “reasonable,” Algeria’s Energy Minister Youcef Yousfi said in Daegu yesterday. Non-OPEC producers led by the U.S., Canada and Kazakhstan will boost supplies next year by the most since the 1970s, reducing the need for OPEC shipments, the International Energy Agency reported on Oct. 11.
Iraq, which isn’t bound by an OPEC quota, was the group’s second-largest producer after Saudi Arabia last month, according to data compiled by Bloomberg. It’s exporting 2.5 million barrels a day of crude and producing 3.3 million, according to Al-Shahristani. Daily output will increase to 3.5 million barrels by the end of the year, he said.
Majnoon, West Qurna-2
Iraq plans to raise crude-export capacity at its southern port of Basrah to 4 million barrels a day by the end of the first quarter after completing a fourth floating terminal, according to Al-Shahristani.
Crude output is set to rise as the Majnoon field reaches 175,000 barrels a day this month and 220,000 barrels before the end of the year, he said. The start of production at the West Qurna-2 field is delayed to the first quarter.
West Texas Intermediate, the U.S. benchmark crude, is little changed after settling at a three-month low of $101.21 a barrel yesterday. London-traded Brent crude is at about $110.
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