Saturday, 16 February 2013

OPEC targets 29.8mn bpd oil production in 2013

NIGERIA and other members of the Organisation of Petroleum Exporting Countries (OPEC) are expected to produce an average of 29.8 million barrels a day in 2013, or 100,000 a day more than it estimated a month ago, according to the cartel’s February monthly report.

The report, which was released Tuesday, put the organisation’s output in January at 500,000 barrels a day.Total OPEC crude oil production averaged 30.32 million bpd in January, representing a minor decline of 21,000 bpd from the previous month.

Crude oil production increased in Angola, Iran, Iraq, and Venezuela, while declining in Saudi Arabia, Nigeria, Algeria, the UAE, and Libya. OPEC crude oil production, not including Iraq, averaged 27.29 million bpd, down by 50 tbpd from December.

Industry experts believed that Nigeria’s oil production may fall by 40 per cent by 2020 without new investment in its key oil and gas industry.The government’s failure to introduce wide-ranging reforms in the industry has put millions of dollars of investment on hold.
Oil industry officials said Nigeria’s bid to increase oil production and reserves is now at risk due to the lack of investment.

Global oil demand will increase by 800,000 barrels a day, or 0.9 percent, to 89.7 million a day, OPEC stated.
“Given some signs of recovery in the global economy and colder weather at the start of this year, the forecast for world oil demand growth in 2013 has also been revised up,” OPEC’s Vienna-based secretariat said. “The bulk of the growth is seen coming from China.”

Global oil demand will increase by 800,000 barrels a day, or 0.9 percent, to 89.7 million a day, OPEC said. That marks an increase of 80,000 barrels a day from last month’s report. China will account for 400,000 barrels a day of this year’s growth.

“If the economic situation continues to brighten up, then there’s a good chance of seeing Brent oil prices higher than $128,” said Gerrit Zambo, an oil trader at Bayerische Landesbank in Munich.
OPEC’s 12 members trimmed production last month by 21,000 barrels a day to 30.32 million a day, according to the report. That leaves output 320,000 barrels a day higher than the collective target of 30 million that the group’s 12 members reaffirmed at their most recent meeting in December. Saudi Arabia, the group’s biggest member and de facto leader, curtailed supplies by 75,800 barrels a day in January to 9.1 million a day.

OPEC Secretary-General Abdalla El-Badri said at a conference in London on Jan. 28 that there is no need for OPEC to restrain production if major economies appear to be struggling and that he does not anticipate any collapse in prices this year.

The organization kept its estimates for production from outside the group in 2013 unchanged. Non-OPEC producers, such as the U.S., Canada and Brazil, will boost supplies by 900,000 barrels a day to 53.9 million.

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