September 21, 2003	Sunday	Rajab 23, 1424

LONDON, Sept 20: The Organization of the Petroleum Exporting Countries (Opec) said on Friday its oil output rose 438,000 barrels per day (bpd) in August to 26.81 million bpd as Iraqi production continued to recover.

Based on estimates from secondary sources that Opec uses to measure its own output, Opec said in its monthly report that Iraqi production rose 440,000 bpd to 1.08 million bpd, topping the one million bpd level for the first time since the US invasion.

But it remains well below pre-war output capacity of 2.8 million bpd due largely to sabotage and bombings on its key northern pipeline export system.

Excluding Iraq, output from the 10 members bound by quotas was 25.73 million bpd, slightly above the current ceiling of 25.4 million bpd.

Opec meets on Wednesday to review its production limits but is not expected to make any changes in output given prices in the middle of its $22-$28 price band.

Saudi Arabia’s output in August was almost unchanged at 8.59 million bpd, but Venezuelan production slipped 35,000 bpd to 2.52 million bpd, Opec said. UAE output rose by almost the same amount to 2.285 million bpd.

Opec revised down the 2003 estimate for demand of its crude marginally to 25.73 million bpd, with fourth quarter demand forecast at 26.46 million bpd.

Next year demand for Opec oil, measured as the difference between world oil demand and non-Opec supply, will ease to 25.38 million bpd as production from non-cartel countries outpaces demand growth, the report said.—Reuters