OPEC Maintains Output Targets But Trims Supply

Dow Jones – …But some analysts estimate that oil supply from OPEC nations is already well below the formal output quota of 28 million barrels a day, excluding Iraq, and is running as much as one million barrels a day less than a year ago. Led by Saudi Arabia, the cartel last year opted to pump full-throttle to fatten up oil inventories globally to meet growing demand, which is at about 84 million barrels a day.

The Saudis are producing less oil, say cartel officials. Saudi and Iranian producers, through a pricing mechanism that either encourages or discourages buyers, also have taken steps to reduce the amount of oil that reaches the market, the officials said. The declines — which are also in part due to supply disruptions like political strife — haven’t been announced and haven’t shown up in official figures.
DowJones Newswires