LONDON, Dec. 10, 2012 /PRNewswire/ -- Crude oil output from the Organization of Petroleum Exporting Countries (OPEC) declined 90,000 barrels per day (b/d) to 31.08 million b/d in November, a Platts survey of OPEC and oil industry officials and analysts showed December 10. This follows October production of 31.17 million b/d and leaves OPEC exceeding its 30 million b/d output ceiling that was agreed to last December, and extended in June, by more than one million b/d.
Decreases totaling 140,000 b/d from Angola, Iran, Libya, Nigeria and Saudi Arabia were partly offset by increases totaling 50,000 b/d from Ecuador, Qatar and the United Arab Emirates (UAE).
The latest survey estimates Iranian output at 2.7 million b/d in November. This follows a steady decline through the year amounting to a loss of some 820,000 b/d since January, ahead of and after the implementation of U.S. and European Union sanctions targeting Iran's economic lifeline, its oil export revenues.
An E.U. embargo on imports of Iranian oil in force since July 1 has deprived Iran of a market for some 600,000 b/d of crude. Brussels has also banned the provision of key E.U.-linked insurance for ships carrying Iranian oil, a move which has had a measurable impact on Asian shipments of Iranian oil.
U.S. sanctions which came into force in late June have also hit Iran's exports to Asia, though the Obama administration has awarded exemption to countries showing significant reductions in imports, easing the sanctions bite on those nations.
The sanctions noose is set to tighten further in early February 2013 as a result of a widening of the U.S. measures, under which an exempted country will be able to continue to buy Iranian oil and avoid sanctions, but only if it makes its oil payment into an account at a bank within its borders. The oil payment can then only be used to facilitate permissible trade between that country and Iran and cannot be transferred to a third country.
OPEC ministers meet in Vienna this week, on December 12, to determine crude output policy for the year ahead. There has been no indication that the group will do more than endorse the current 30 million b/d overall ceiling, agreed a year ago and extended in June, which does not include individual country quotas.
Earlier last week, Ecuadorean oil minister Wilson Pastor-Morris said he favored maintaining the current ceiling, emphasizing that OPEC would be flexible enough to maintain necessary supplies.
But OPEC kingpin Saudi Arabia has yet to make its position clear. Oil minister Ali Naimi said last month that current oil prices – then trading around $109-$110 per barrel (/b) for Brent crude futures – were "good," that oil markets were in balance and inventories comfortable.
To access over 3,000 of the latest oil projects from across the world visit Projects OGP for free trial today