Saudi oil output rises to highest level in at least 23 years
Source: BI-ME with Bloomberg , Author: Posted by BI-ME staff
Posted: Fri June 1, 2012 10:33 am

INTERNATIONAL. Oil output by the Organization of Petroleum Exporting Countries rose in May to the highest level since 2008 as Saudi Arabia pumped crude at the fastest pace in at least 23 years, a Bloomberg survey showed.

OPEC production gained 20,000 barrels to an average 31.595 million barrels a day in May from a revised 31.575 million in April, according to the survey of oil companies, producers and analysts.

Output increased to the highest level since October 2008. The April total was revised 170,000 barrels a day higher.

Saudi Arabia, OPEC’s biggest producer, bolstered output by 80,000 barrels to 9.9 million barrels a day this month, the highest level since at least January 1989, based on monthly data compiled by Bloomberg.

Saudi Arabian Oil Minister Ali al-Naimi said on May 13 in Adelaide, Australia, that he wanted to see the Brent crude contract drop to $100 a barrel. Brent oil for July settlement decreased $1.60, or 1.6 percent, to $101.87 a barrel on the London-based ICE Futures Europe exchange. It was the lowest close since Oct. 4.

“The Saudis are making it abundantly clear that they will keep the market well supplied,” said Michael Lynch, president of Strategic Energy & Economic Research in Winchester, Massachusetts. “They wanted to see prices fall, and that’s finally taking place.”

Libyan output rose 50,000 barrels to 1.4 million this month, the highest level since January 2011, the survey showed. Production in the country tumbled to 45,000 barrels a day in August from 1.585 million that January, the last month before an uprising that overthrew the government of Muammar Qaddafi disrupted output.

Nigerian production climbed 40,000 barrels a day to 2.18 million this month, the third-biggest increase in OPEC, the report showed.

Output in Iran, the group’s second-biggest producer, declined 50,000 barrels a day to 3.225 million, the lowest level since June 1992.

Iraqi production decreased 45,000 barrels to 2.94 million a day this month. Output in April surged to the highest level since October 2001. The country’s output had been depressed since the U.S.-led invasion of the country in March 2003. Iraq had the second-biggest production decline this month.

OPEC decided at a Dec. 14 meeting in Vienna to increase its production ceiling to 30 million barrels a day, the first change in three years. The new target is for all members, including Iraq, which had previously been exempt from monthly goals. OPEC will review quotas at its next meeting, scheduled for June 14.

“The members obviously have no particular interest in the group’s quotas,” Lynch said. “The meeting next month should be very straightforward and uneventful.”

 

MIDDLE EAST BUSINESS COMMENT & ANALYSIS

date:Posted: November 20, 2014
INTERNATIONAL. The trajectory of Japan's economy has much to teach us about the wisdom of Keynesian policies. Those who are not blinded by left-wing dogma should take a good look at where the road of permanent stimulus ultimately leads.
date:Posted: November 20, 2014
INTERNATIONAL. The path to the acceptance of the participatory approach to development was forged, through trial and error, over several decades until the 1990s, when its global recognition by development practitioners became well-established.
date:Posted: November 20, 2014
INTERNATIONAL. There is a high degree of uncertainty over how the Iranian negotiations and the OPEC meeting will play out, but the end of November will be hugely important for energy markets.
INTERNATIONAL. Both countries posted freedom scores of 8.1, according to the annual Economic Freedom of the Arab World report published by the Fraser Institute. Bahrain dropped from first place last year to third place and a score of 8.0 in this year's report, which is based on 2012 data, the most recent available.
dhgate