Iran pushes up September OPEC output

OPEC Oil Output July-September [86,646 bytes] Total oil production by Organization of Petroleum Exporting Countries (OPEC) members rose in September despite a promise to cut output. In June, OPEC members except for Iraq, which is tied to an oil-for-aid agreement with the United Nations, pledged to reduce combined output to 24.387 million b/d in a bid to revive oil prices (OGJ, June 29, 1998, p. 28).

Oct. 19, 1998

2 min read

OPEC Oil Output July-September [86,646 bytes]

Total oil production by Organization of Petroleum Exporting Countries (OPEC) members rose in September despite a promise to cut output.

In June, OPEC members except for Iraq, which is tied to an oil-for-aid agreement with the United Nations, pledged to reduce combined output to 24.387 million b/d in a bid to revive oil prices (OGJ, June 29, 1998, p. 28).

Middle East Economic Survey (MEES) estimated that combined OPEC output rose to 27.27 million b/d in September from 27.01 million b/d in August. "Compliance with the 2.6 million b/d total of production cuts pledged," said MEES, "fell to an average of 81% in September, as compared with 92% in August. However, it still represents an improvement over the July figure of 69%."

MEES blamed the September hike in production on Iran, which raised its output by 305,000 b/d to 3.688 million b/d: "The pattern of Iranian oil output has been fluctuating considerably from month to month since last March, with little or no discernible relationship to the OPEC cutback program."

Nigeria's output recovered in September, after local political protests disrupted supplies, but MEES said the position has deteriorated again in October. Shell Petroleum Development Co. of Nigeria Ltd. and Nigerian Agip Oil Co. have declared force majeure on 380,000 b/d and 130,000 b/d of output from their Bonny/Forcados and Brass River terminals, respectively.

Newspaper reports said that Nigerian protesters called on foreign oil workers to leave installations in the southern delta region. Armed youths have occupied oil pumping stations for more than 1 week, with Shell having to shut down 15 flow stations (OGJ, Oct. 12, 1998, Newsletter).