OPEC Oil Output Falls in September: Survey

OPEC oil supply in September fell, the first monthly decline since April, as violence in Nigeria cut output and top exporter Saudi Arabia trimmed production, a Reuters survey showed on Friday.

The survey indicates that output from the Organization of the Petroleum Exporting Countries, source of two in every five barrels of oil, was falling even before it agreed at a meeting in September to trim output and prop up prices.

Oil has fallen to about $95 a barrel from a record $147.27 in July, hit by concern that global financial turmoil will cut demand.

But it is too early to say how OPEC, which holds its next meeting in December, needs to respond, an official said.

"We are in a moment of turmoil. Vision is blurred," Shokri Ghanem, the top oil official for OPEC member Libya, told Reuters.

"We will give it a few days until things calm down, then we can form an opinion."

Supply from all 13 OPEC members fell to 32.39 million barrels per day in September from 32.70 million bpd in August, according to the survey of oil firms, OPEC officials and analysts.

The decline was due to supply disruptions in two of OPEC's African members, and lower shipments to customers from the group's top two producers Saudi Arabia and Iran.

Attacks on Nigeria's oil industry curbed output by 60,000 bpd, the survey found.

During one six-day period in September, militants bombed pipelines, platforms, gas plants and oilfields, halting up to 150,000 bpd of production.

Angolan supply dropped because the BP-led Plutonio field remained closed.

The 200,000-bpd site shut on Aug. 16 following an incident at a gas plant at the facility.

Saudi, Iran

Fewer barrels from Saudi Arabia also contributed to the decline in output.

The kingdom supplied 9.55 million bpd in September, down from 9.65 million bpd in August, according to the survey.

It had raised output earlier in the year partly to quell what it saw as unacceptably high prices.

Iranian supply declined by 50,000 bpd due to lower exports.

Iran's exports can vary month-to-month, affecting supply, while oilfield production remains little changed, analysts say.

The survey suggests the 12 OPEC members bound by deals to set supply policy, all except Iraq, pumped 30.18 million bpd, above their target of 29.67 million bpd, the survey found.

OPEC supply may fall further in coming months should members implement an agreement reached in September in Vienna to comply strictly with its formal output target, a move OPEC officials said would result in members trimming their actual supply of crude oil by about 500,000 bpd.

OPEC also adopted a new supply target of 28.8 million bpd -- effectively unchanged because it excludes Indonesia, which has suspended its membership from Jan. 1 2009.

Supply from Iraq declined in September by 90,000 bpd to 2.21 million bpd due to rising domestic consumption and a slowdown in exports, the survey found.

OPEC agreed at a meeting on Sept. 9-10 to adopt a production ceiling of 28.8 million bpd for 11 members, all except Indonesia and Iraq.

The producer group declined to provide a list of individual members' output targets.

The limits given are in line with figures previously issued by OPEC.

Indonesia is included within OPEC until the suspension of its membership takes effect on Jan. 1, 2009.

OPEC quotas exclude condensate and natural gas liquids and apply to supply rather than wellhead output, defined to exclude movements to, but not sales from, storage.

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