- Title: AUSTRIA: OPEC ANNOUNCES THAT OIL OUTPUT IS ABOVE ITS OFFICIAL OUTPUT CEILING
- Date: 22nd July 2004
- Summary: (W5) VIENNA, AUSTRIA (JULY 22, 2004) (REUTERS) 1. VARIOUS OF EXTERIORS OF OPEC (ORGANISATION OF PETROLEUM EXPORTING COUNTRIES) HEADQUARTERS (3 SHOTS) 0.23 2. OPEC SECRETARY GENERAL, PURNOMO YUSGIANTORO, SEATED AT NEWS CONFERENCE 0.32 3. (SOUNDBITE) (English) OPEC SECRETARY GENERAL, PURNOMO YUSGIANTORO, SAYING: "After the heavy consultations among our ministers on recent market developments, and the supply and demand, have made it clear to us that market conditions were essentially unchanged since our meetings in Beirut. On that occasion, in Beirut conference, we decided to increase OPEC production ceilings in two stages. By two million barrels a day to 25.5 million barrels per day with effect from July 1st, and by a further 500 thousand barrels of oil per day, to 26 million barrels per day, with effect from August 1st." 1.30 4. SIDE VIEW PURNOMO AT NEW CONFERENCE 1.35 5. VARIOUS OF MEDIA AT NEWS CONFERENCE (3 SHOTS) 1.59 Initials Script is copyright Reuters Limited. All rights reserved
- Embargoed: 6th August 2004 13:00
- Keywords:
- Location: VIENNA, AUSTRIA
- Country: Austria
- Reuters ID: LVA4O7IA73MDG596QAD6IEDCZ7GE
- Story Text: OPEC announces output above its official output
ceiling.
OPEC is trying to prevent world oil prices rising further
by pumping well beyond official output limits but
is close to full capacity, cartel Secretary General Purnomo
Yusgiantoro said on Thursday (July 22).
Purnomo told reporters at Organisation of Petroleum
Exporting Countries' (OPEC) headquarters the group was
supplying about two million barrels a day above agreed
limits of 25.5 million bpd for July, for 10 members with
quotas.
The extra output was a "positive response" to prices
above $40 a barrel for U.S. crude, close to a 21-year high,
he said.
Purnomo said his organisation did not want to see
further price rises, despite the weak dollar.
Some OPEC members have previously suggested dollar
weakness justifies higher oil prices to compensate for a
loss of revenues on dollar-denominated world oil markets.
Latest independent estimates are that OPEC this month
will pump 30 million bpd for the first time since 1979.
OPEC supplies could rise further in August by "a few
hundred thousand" barrels a day, cartel chief economist
Adnan Shihab-Eldin told the briefing.
Iraq, plagued by sabotage attacks, was expected to lift
output to 2.3 million bpd over the next few months, well
above average supplies since the beginning of June, said
Shihab-Eldin.
Purnomo pegged current spare capacity in OPEC at about
1.5 to two million bpd higher than most independent
estimates.
He said new investment would increase capacity by late
2004 or during 2005. He said that in the near future, it
should be possible to increase production capacity by 2.5-3
million bpd.
OPEC last week cancelled a meeting scheduled for this
week and automatically pushed through an additional output
increase of 500,000 bpd from August for official supply
limits.
The increase is the second part of 2.5 million bpd
increase agreed in Beirut in early June that has made
little impact on world oil prices.
"At the Beirut conference, we decided to increase OPEC
production ceilings in two stages. By two million barrels a
day to 25.5 million barrels per day with effect from July
1st, and by a further 500 thousand barrels of oil per day,
to 26 million barrels per day, with effect from August
1st," Purnomo said.
Purnomo said the group will consider proposals to raise
its official $22-$28 price target when it next meets on
September 15. A decision on lifting the price band needs to
be unanimous and has been opposed by leading producer Saudi
Arabia.
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