OPEC states’ realignment reflects oil supply reality

LONDON, Sept 14 (Reuters) – OPEC has published new oil supply targets for its 10 members bound by a pact to raise production, a move that reflects increases in production capacity in some countries and declines in others.

…Under OPEC’s old quota system, changes in individual member states’ limits would have been made on a pro-rata basis. But quotas in this form had long ceased to reflect the realities of OPEC states’ ability to produce oil.


For instance Indonesia, an importer of oil, had a quota that far exceeded its capability.

“The quota system is in the past,” an OPEC source said on Friday. “Everything now is based on actual production.”

Reuters