Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : Strictly: Drilling and oil-field services -- Ignore unavailable to you. Want to Upgrade?

To: William JH who wrote (52962)	10/14/1999 10:10:00 AM
From: oilbabe	Read Replies (1) \| Respond to of 95453

OPEC Compliance With Oil Output Cuts Surpasses 90%, Iran Says Tehran, Oct. 14 (Bloomberg) -- Iran, the second-biggest oil producer in OPEC, and the United Arab Emirates denied reports that oil exporters raised output last month, saying that compliance with self-imposed production cuts remained high. Oil prices in London fell 6.3 percent on Oct. 8 on reports that 10 members of the Organization of Petroleum Exporting Countries pumped 23.33 million barrels a day last month, 90,000 more than a month earlier, a Bloomberg survey said. Compliance with output quotas fell by 2 percentage points from a month earlier to 92 percent. Though prices have since recovered, traders remain alert for signs that exporters are selling more oil to raise additional revenue. OPEC nations said they will continue to restrain output to ensure that a world glut ends. ``Compliance has been above 90 percent over the last four months, and it will remain at this high level,' said Hossein Kazempour Ardebili, Iran's OPEC governor. Iran is ``confident' that production cuts would drain 2 million barrels a day from global inventories in the fourth quarter, he said. OPEC and four non-OPEC producers pledged earlier this year to reduce world oil output by more than 5 million barrels a day, or about 7 percent, for one year, starting April 1. The producers reaffirmed their commitment at a meeting in Vienna on Sept. 22. Many producers prefer to monitor production on a quarterly basis in an effort to smooth monthly fluctuations. By this standard, OPEC's third-quarter compliance reached 93 percent, up from 88 percent in the second quarter. Even so, many analysts say they expect that OPEC nations will continue to boost output in the months ahead. Rising demand from winter heating fuel use in the Northern Hemisphere should limit the market's drop, they say. ``I think we have seen the peak of compliance,' said Mohammed Abduljabbar, an analyst with Washington-based Petroleum Finance Co. ``I don't think we will see a big drop in compliance, but as long as it remains above 80 percent then Brent should stay around $20 a barrel,' he said. Brent in London today sold for $22.82 a barrel after the American Petroleum Institute said U.S. inventories last week fell more than analysts expected. United Arab Emirates Oil Minister Obeid bin Seif Al-Nasseri described the recent fluctuations in oil prices as ``normal.' ``We hope that compliance with cuts would be better in order to maintain previous gains and to achieve price stability,' he said, according to the official WAM news agency. The oil ministers of Saudi Arabia, Venezuela, and Mexico are expected to review compliance levels when they meet in Riyadh next month.