OPEC trims output nearer to target in Jan

London, Feb 3: OPEC moved closer in January towards meeting fully a pledge to cut production as Nigerian supply slipped and Saudi Arabia trimmed output further, a Reuters survey found.

Supply from the 10 members bound by output targets was 26.8 million barrels per day (bpd), down 160,000 bpd from December, the survey of oil companies, traders and analysts found. That is still 500,000 bpd more than the target OPEC set from Nov. 1.

The drop in supply coincides with a gain in oil prices to more than a barrel as colder weather in top consumer the United States boosts winter fuel demand. U.S. crude fell below for the first time since May 2005 on Jan. 18.

''OPEC output is coming down and maybe that is all they have to do,'' said Paul Tossetti, director of market analysis at Washington-based PFC Energy.

January output from the 10 OPEC countries was 840,000 bpd less than in October, according to Reuters estimates, indicating they have yet fully to meet their pledge to cut output by 1.2 million bpd starting from Nov. 1.

The Organization of the Petroleum Exporting Countries agreed last year to lower output by 1.2 million bpd from Nov. 1 and set a supply target of 26.3 million bpd for the 10 members.

Total OPEC output rose to 29.91 million bpd from 28.75 million bpd in December because Angola became a member of the exporter group from Jan. 1.

Nigerian output fell as Shell shut down a 12,000 bpd production site after violence forced it to pull out workers.

Output of Brass River crude was cut, traders said, following militant attacks at Agip's Tebidaba field.

Saudi Arabia, OPEC's top producer, lowered supply further in January and is meeting virtually all of its share of the promised supply cutback, the survey found yesterday.

Iraq, excluded from OPEC deals to cut output, cut supply to 1.64 million bpd because of a drop in exports.

Exports fell in January to 1.29 million bpd, the lowest in a year, after maintenance and bad weather cut shipments from Basra, the country's main terminal, industry sources said.

Angola, which pumped 1.47 million bpd in January, is also exempt from the supply cut.

OPEC plans to cut supply by a further 500,000 bpd from Feb.

1, adding to the 1.2 million bpd November reduction.

Following is crude output in millions of barrels a day: Jan Dec Oct Cut pledged Official output output output from Nov. 1 Quotas Algeria 1.32 1.32 1.35 0.059 0.894 Indonesia 0.85 0.86 0.85 0.039 1.451 Iran 3.83 3.83 3.9 0.176 4.11 Kuwait 2.42 2.42 2.49 0.1 2.247 Libya 1.7 1.7 1.73 0.072 1.5 Nigeria 2.15 2.29 2.35 0.1 2.306 Qatar 0.8 0.8 0.82 0.035 0.726 Saudi Arabia 8.73 8.75 9.05 0.38 9.099 UAE 2.5 2.5 2.59 0.101 2.444 Venezuela 2.5 2.49 2.51 0.138 3.223 OPEC-10 26.8 26.96 27.64 1.2 28 Iraq 1.64 1.79 1.9 Angola 1.47 TOTAL 29.91 28.75 29.54 (R)-Revised.

NOTE - 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. Saudi and Kuwaiti data includes Neutral Zone. Saudi data excludes oil produced for Bahrain. Venezuelan data includes upgraded synthetic oil.

Reuters