OPEC output rises 2%: MEES

www.theage.com.au Saturday 15 February 2003, 18:30PM

OPEC oil production rose 2.2 per cent to 25.663 million barrels per day (bpd) in January from December despite the turmoil in Venezuela, the Middle East Economic Survey (MEES) reports.

Output from the cartel's 10 members without Iraq increased 1.2 per cent or 263,000 bpd to 23.11 million bpd from 22.85 million bpd in December.

Baghdad accounted for just over half of OPEC's overall increase in January, the industry newsletter says in its Monday edition.

Gulf states Kuwait, Saudi Arabia and the United Arab Emirates together lifted production by 580,000 bpd while Iraq pumped 2.55 million bpd, a level not seen since since the first quarter of 2002, MEES notes.

"High Iraqi production is only being achieved at the price of damage to reservoirs - particularly in the north," MEES says.

Iranian production fell slightly on lower exports at 2.263 million bpd as domestic consumption remained steady on 1.45 million bpd.

MEES says the general strike in Venezuela saw average production drop to 620,000 bpd in January from one million bpd in December and three million bpd before the strike began at the end of 2002.

World oil prices climbed to their highest level in more than two years as traders bet on a war in Iraq despite diplomatic efforts at the United Nations.

New York's reference light sweet crude contract for March delivery rose 44 cents to 36.80 dollars a barrel, the highest level since September 2000.

The price of London Brent North Sea crude oil for April delivery, the new benchmark contract, rose seven cents to 32.53 dollars a barrel.