OPEC Output Rises; Further Increase Seen

Oil production by the Organization of Petroleum Exporting Countries rose nearly 1 million barrels a day in November to hit a daily level of 23.63 million barrels and is expected to increase further, the Middle East Economic Survey reported today.

Amid continuing war jitters in the Persian Gulf, the respected oil industry newsletter said the increase was partly due to Saudi Arabia hiking its daily production by 530,000 barrels to 8.33 million barrels.

The Saudis are expected to boost output further this month to about 8.63 million barrels a day, the Nicosia-based newsletter said.

The Saudi Oil Ministry has accelerated plans to expand production capacity to about 10 million barrels a day in the next few years, a level last seen in the early 1980s.

The November increase of 970,000 barrels a day put OPEC production at its highest level since May, when it was 23.68 million barrels a day.

The survey noted that Iran’s production rose in November by 460,000 barrels a day, after dipping in October.

Iran’s current production of 3.46 million barrels a day means that Iranian production is running at more or less its September level.

Some of OPEC’s 13 members sharply increased production levels after Iraq invaded Kuwait Aug. 2 and a United Nations trade embargo halted all exports of Iraqi and Kuwaiti oil.

Saudi Arabia, OPEC’s leading producer, has more than doubled its production since August to help make up the shortfall.