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Gold/Mining/Energy : Oil & Gas Price Economics -- Ignore unavailable to you. Want to Upgrade?

To: Ed Ajootian who wrote (115)	5/6/1999 8:23:00 AM
From: diana g	Read Replies (1) \| Respond to of 350

Article on Compliance (Reuters) biz.yahoo.com OPEC axes April oil output by 1.34 mbpd-survey By Richard Mably LONDON, May 6 (Reuters) - OPEC took an axe to oil exports in April, completing the lion's share of the output-cutting task it set itself in March to lift prices, a Reuters survey found. The Organisation of the Petroleum Exporting Countries slashed April output by 1.34 million barrels a day (bpd) to 26.38 million bpd from a revised 27.72 million bpd in March, according to the survey of OPEC and industry officials, analysts and consultants. Lower supplies were recorded by most of OPEC's big guns as they moved quickly to implement new supply limits. Saudi Arabia, Iran, Venezuela and the United Arab Emirates all made strides towards their new targets. The survey's April output estimate shows 81 percent compliance among 10 OPEC members with their targeted limits. ''They've moved surprisingly quickly,'' said one monitor. ''But the fact that prices have recovered so quickly raises the question of how long they can maintain production discipline.'' One U.S. consultancy said it had seen evidence of higher supplies towards the end of April which it said could be interpreted as evidence of exporters cashing in on higher prices. Benchmark Brent blend has soared to $17 a barrel from less than $10 in late February. Estimates from the consultants and analysts who monitor OPEC output varied over a wide range for April from 26.07 million to 26.76 million. The Reuters survey, though not an exact average, fell in the middle of those estimates. That suggests a degree of uncertainty over exactly how far some OPEC members are lagging in meeting new quotas. But the consensus was that Iran had reduced from high levels of 3.8 million in March to just over 3.4 million in April. Venezuela reduced supplies but remained well above its new 2.725 million target while Saudi Arabia was pegged at about 7.6 million, still with more to do. Smaller producers like Indonesia and Qatar appeared to make only token efforts with Qatar in particular, at 690,000 bpd, some 100,000 bpd over quota. The Reuters survey seeks a best estimate of wellhead flows in OPEC countries based on the views of officials, industry monitors and analysts inside and outside member countries.