OPEC sees risk of overproduction
The Organization of the Petroleum Exporting Countries (OPEC) warned in a report released on Wednesday that its members might be pumping too much oil given the uncertain global economic outlook, DPA reported.
The cartel's latest monthly market report came one week before the next regular OPEC meeting in Vienna, where oil ministers are set to discuss production levels.
OPEC's supply exceeds demand by 1.5 million barrels per day (bpd), the cartel's experts calculated. One barrel equals 159 litres.
"Even taking into account the uncertainty regarding demand for OPEC crude, current OPEC production is likely to exceed market needs," the report said, calling for "continued caution and close monitoring."
The report signalled that "there is a necessity to urge a better adherence to production quotas" at next week's conference, said Carsten Fritsch, an analyst at Commerzbank in Frankfurt.
But he added that OPEC members were unlikely to heed such calls, given the current price level.
OPEC's basket price has been on the rise in the past weeks, averaging 76.67 dollars per barrel so far this month.
With a combined monthly output of 26.8 million barrels per day (bpd) in February, the 11 OPEC countries included in the group's quota system pumped nearly 2 million bpd more than their agreed production limit.
OPEC's 12th member, Iraq, is not bound by a quota and added another 2.5 million bpd of crude oil to the cartel's output.
A large share of the production increases in February came from Angola, Iraq and Venezuela.
OPEC's members produced 34 per cent of the world's crude supplies in February.