By OGJ editors
HOUSTON, Feb. 10 -- The Organization of Petroleum Exporting Countries decided to reduce its quota production ceiling by 1 million b/d to 23.5 million b/d of oil, effective Apr. 1. The decision was made during an extraordinary meeting held Tuesday in Algiers.
OPEC members (excluding Iraq) said they will maintain their current 24.5 million b/d oil production quota until Mar. 31.
OPEC members reviewed oil market developments and noted that, despite increased oil demand observed in 2003, especially during the fourth quarter, production seemed to match market demand throughout 2003 and in the first quarter 2004. OPEC made the reduction to maintain prices within the established target range of the OPEC reference basket of crudes.
"However, in view of the projected significant supply surplus in the seasonally low demand second quarter, the conference decided that remedial supply responses are needed to maintain market balance and avert downward pressure on oil prices," OPEC News Agency reported.
The next ordinary meeting for OPEC will convene Mar. 31 in Vienna. Another extraordinary meeting will take place June 3 in Beirut.
New quota production levels and the reduction amounts for the 10 OPEC members, excluding Iraq, were as follows: Algeria, 750,000 b/d, down 32,000 b/d; Indonesia, 1.218 million b/d, down 52,000 b/d; Iran, 3.45 million b/d, down 147,000 b/d; Kuwait, 1.886 million b/d, down 80,000 b/d; Libya, 1.258 million b/d, down 54,000 b/d; Nigeria, 1.936 million b/d, down 82,000 b/d; Qatar, 609,000 b/d, down 26,000 b/d; Saudi Arabia, 7.638 million b/d, down 325,000 b/d; UAE 2.051 million b/d, down 87,000 b/d; and Venezuela, 2.704 million b/d, down 115,000 b/d.