AS world oil exporters meet today, Nigeria seems very comfortable with the prevailing oil prices, therefore may not likely support any production change at the Organisation of Petroleum Exporting Countries (OPEC) meeting in Vienna, Austria.

The Minister of Petroleum Resources, Rilwanu Lukman recently said he
would like to see oil prices remain at between $70-80 a barrel and will
not push for production changes at the meeting to consider oil output
policy.

Lukman said Nigeria was pumping around 1.7 million barrels per day
(bpd) of oil, up from just 1.2 million bpd at the height of violence in
the Niger Delta, and that it was therefore meeting its OPEC quota.

“We would like to see the price remain between $70-80. For the production, it is okay as it is for now.”

Attacks by militants in the Niger Delta on oil pipelines and facilities
over the past three years have prevented Nigeria from pumping much
above two thirds of its 3 million bpd installed capacity.

But an amnesty offer to gunmen from President Umaru Yar’Adua has brought a lull in the violence.

On the impact of the amnesty offer, Lukman said, “At the height of
militant activity, oil production dropped to 1.2 million, but now we
are doing 1.7 million. We are happy, things are getting better. We hope
it will improve more with the amnesty programme in place,”.

There are indications that more of the OPEC ministers would concur with
unchanged oil production targets, on expectations that demand would
strengthen over winter as the global economic recovery gathers pace.

Qatar’s oil minister Abdullah bin Hamad Al Attiyah, said OPEC will
likely keep output quotas unchanged, adding that OPEC may extend the
rollover because the market situation needs this to balance demand and
supply,”

In recent weeks, some officials from OPEC, which produces about 40 per
cent of the world’s oil, said they are happy with oil prices around $70
a barrel.

OPEC had last year agreed to cut output by 4.2 million bpd, which is
equal to about five per cent of daily world demand, from its output
levels to prop up slumping prices. Compliance will be discussed and
emphasised during the meeting.

Meanwhile, Iran’s OPEC Minister, Mohammad Ali Khatibi said he would
seek to discuss how to address an expected overhang in crude oil
supplies.

According to him, demand for oil produced by the oil cartel is expected
to be around 28 million barrels a day in the first quarter of 2010,
which suggests a supply surplus if OPEC production remains at current
levels.

Khatibi said secondary sources estimated OPEC’s production in July at
around 28.7 million barrels a day, adding that if OPEC continues this
production, stockpiles will build by 700,000 barrels per day.

Total oil output by OPEC’s 12 members rose by 0.9 per cent in July
versus the previous month, based on input from analysts and government
sources.

Source: Guardian Newspapers Limited

Search to find what you want

• Iran sees no reason for OPEC to change output

    Most OPEC members believe it is too early to decide on output changes as stockpiles remain high. Iran’s representative to the Organization of Petroleum Exporting Countries (OPEC) says there is no valid justification for the group to change its oil production targets

• OPEC increased output in November, Bloomberg News survey shows

    The Organization of Petroleum Exporting Countries increased crude-oil production in November to the highest level in 11 months as members took advantage of rising prices, a Bloomberg News survey showed. Output averaged 28.9 million barrels a day last month, up 110,000 barrels from October, according to the survey of oil

• Iraq says oil prices to a satisfactory, OPEC output is likely to remain unchanged

    Iraq’s top oil official says prices are at satisfactory levels and does not expect OPEC to make changes to output during its meeting next month. Oil Minister Hussain al-Shahristani told The Associated Press on Monday the 11-member Organization of the Petroleum Exporting Countries will instead discuss lackluster member compliance with

• Petrobras may not be affected much, if Brazil joined OPEC: CEO

    Brazil’s decision on whether to join the Organization of Petroleum Exporting Countries is up to Brazil’s government, said Sergio Gabrielli, chief executive of state-run oil company Petroleo Brasileiro SA Petrobras, Saturday.

• UAE to cut oil production in February

    The Abu Dhabi National Oil Company, the largest such company in the United Arab Emirates, has announced it will cut back its production from February, the official WAM news agency said Monday. The move is “in line with (an) OPEC decision to cut production,” the report said without providing further

• Iraq Says OPEC should strengthen its production goals

    The Organization of Petroleum Exporting Countries should maintain oil production levels when it meets next month in Vienna, Iraq’s oil minister said today. There is “still room for improvement” in oil prices, trading around $74 a barrel in New York today, Oil Minister Hussain al-Shahristani said. OPEC, responsible for 40 percent of

• Iranian minister does not expect OPEC to agree to hike output

    Iran, the second largest oil producer in the Organization of Petroleum Exporting Countries, said Tuesday it does not expect any decision to hike crude output at the cartel’s meeting later this month. “Given the circumstances, there will not be an output increase and OPEC will not permit members to do

• OPEC undecided in terms of performance, the market looks balanced

    OPEC is still deciding whether to adjust crude output next month, and so far sees a “balanced” market, a senior Gulf source told Reuters on Tuesday in the Chinese city of Fuzhou, on condition of anonymity.

• OPEC nations brace for the year 2010 Price Shift

    The Organization of Petroleum Exporting Countries is expected to keep production steady when it meets Tuesday, but members are bracing for a potentially challenging year that could see oil prices weaken at a time when some OPEC nations are in need of price increases. Oil prices have risen nearly 60%

• OPEC Oil Output Falls in September, Bloomberg News survey shows

    The Organization of Petroleum Exporting Countries trimmed production for a second consecutive month, led by declines in Iraq, Saudi Arabia and Angola, a Bloomberg News survey showed. Production averaged 28.395 million barrels a day last month, down 50,000 from August, according to the survey of oil companies, producers and analysts. Excluding Iraq, which

• Overall impact of OPEC production cuts feels

    Total SA, Europe’s third-biggest oil company, said production by Opec member countries is falling as the states seek to comply with output quotas. “Unfortunately we are losing a good amount in production,” Chief Executive Officer Christophe de Margerie said yesterday in Paris. “They’re often less-profitable barrels than what we produce in

• OPEC calls for a continuation of the performance Caution Over Oil Price Risk

    The Organization of Petroleum Exporting Countries Tuesday called for output caution, saying oil prices remain vulnerable and reinforcing expectations it will keep output steady when it meets in March.

• Iran says non-OPEC Output Rise reason for the price cut

    Iran’s oil Minister said on Sunday that the increase of crude production by non-OPEC countries has had an adverse impact on oil prices, the official IRNA news agency reported. “Although OPEC has lowered its production ceiling several times, non-OPEC producers have increased their oil output with negative impact on crude

• Platts Survey: OPEC Oil Output Rises to 28.83 million barrels per day in September

    The Organization of the Petroleum Exporting Countries crude oil production averaged 28.83 million barrels per day (b/d) in September, up 40,000 b/d from August’s 28.79 million b/d, a Platts survey of OPEC and oil industry sources and analysts showed October 8. “Production has risen again but mainly because of higher

• Iran welcomes OPEC output u0026quot Compliance as

    OPEC members achieved a 66 percent compliance last year with agreed crude output targets, a senior Iranian oil official was quoted as saying on Sunday, describing it as a “success”. The producer group decided at a Dec. 22 meeting in Angola to keep its output policy unchanged, but faces a