The Organization of Petroleum Exporting Countries, which has agreed to maintain its present combined production of 24.2 million b/d of oil in the fourth quarter, will soon see the first pullout of a member.
The 13 member group will shrink to 12, probably in November, when Ecuador withdraws. Ecuador President Sixto Duran Ballen issued notice of the pullout Sept. 17, a little more than 1 month after he took office.
Ecuador, strapped for cash, wants to save OPEC membership dues reported to be $2-3 million/year. It plans to remain an associate member, although it wasn't immediately clear what that means. No other countries are regarded as associate members.
At 323,000 b/d, Ecuador is only one notch off the bottom of the heap among OPEC producers in terms of oil production.
It exports a little more than half of that volume.
Duran cited countries such as Norway, U.K., and Mexico, none an OPEC member, that export significant volumes of oil.
PRODUCTION VOLUME
Iran rejected the fourth quarter production accord reached this month during OPEC oil ministers' regular meeting in Geneva.
Iranian Oil Minister Gholamreza Aghazadeh wanted a price increase above the agreed minimum reference price of $21/bbl. He also backed a lower production volume yet said Iran will boost production if it sees fit.
Ministers agreed to allow for rising production from Kuwait as it recovers from the effects of the Persian Gulf war. OPEC's announcement of the production level used the phrase "market share" in place of the usual "production ceiling," causing some commentators to doubt whether it will stick to its decision.
Middle East Economic Survey said the 24.2 million b/d figure represents such a conservative projection for fourth quarter demand for OPEC crude, which could be as much as 25.7 million b/d, that a substantial production overshoot can be absorbed without too much trouble.
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