Platts Survey: February OPEC Oil Output Fell to 28.07 Mil. Barrels Per Day

LONDON - Production down 900,000 barrels per day

Platts — The 12 members of the Organization of the Petroleum Exporting
Countries (OPEC) (www.opec.platts.com/) pumped an average 28.07
million barrels per day (b/d) in February, as the oil producer club continued
its efforts to slash oversupply and prevent oil prices falling further,
according to a Platts survey of OPEC, oil industry officials and analysts
just released. This is down 900,000 b/d down from January’s 28.97 million b/d.

Production from the 11 members bound by quotas under a 24.845 million b/d
target ceiling fell to 25.72 million b/d, a drop of 820,000 b/d from
January’s 26.54 million b/d but still 875,000 b/d above the OPEC-11 target of
24.845 million b/d. Iraq, which does not have a quota, is allowed to produce
at will as it struggles to rebuild its oil industry.

“OPEC should have a very interesting meeting this weekend,” said Platts
Global Director of Oil John Kingston
(www.platts.com/bios/kingston.xml). “The deepening economic gloom
should, in theory, support the case for a new cut. Yet the group has still
not managed to reduce output to the target level, though at a compliance rate
just short of 80%, it’s very close.” Kingston says OPEC remains concerned,
even after the cuts it has made, of putting too much oil into the market, and
that hesitation will certainly be present in Vienna this weekend.

Using OPEC’s 29.045 million b/d baseline for the cuts — its own estimate
of September production from the OPEC-11, the survey suggests a compliance
rate of 79.2%.

It was agreed at OPEC’s December 17 meeting in Algeria, the group would
combine two earlier output reductions totalling 2 million b/d with a new net
cut of 2.2 million b/d. The resulting 4.2 million b/d was to be cut from
September production estimates derived from secondary sources.

The group will meet Sunday, March 15, in Vienna to review the current
agreement. Saudi-owned newspaper Al-Hayat reported Monday that Saudi Arabia,
OPEC’s most powerful producer, had told OPEC president Angola that it wanted
better compliance with the existing cut and that a further reduction would
not be needed if the group managed to remove from the market an end-January
surplus of 1.5 million b/d.

Some analysts do not rule out a further cut.

For production numbers by country, view this table
(www.platts.com/Oil/Resources/News%20Features/opec/prod_table.xml). For
an OPEC production map, click here
(www.platts.com/Oil/Resources/News%20Features/opec/OPECmap2.html). And
for related and other energy information visit Platts online
(www.platts.com/).

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Source: Platts

Kathleen Tanzy, +1-212-904-2860, Kathleen_tanzy at platts.com; or Europe, Shiona Ramage, +44-207-176-6153; or Asia: Casey Yew +65-653-06552, all for Platts