JP Morgan: OPEC to trim output for balancing market
Azerbaijan, Baku, Feb. 15 / Trend A.Badalova/
OPEC will trim its output by 800,000 barrels per day (kbd) in the second quarter of 2012, the analysts at the U.S. bank JP Morgan predict.
"OPEC, led by Saudi Arabia and Kuwait, will trim output by some 800 kbd in the second quarter of 2012 versus estimated January 2012 levels to help balance the market," analysts said.
Analysts believe that if Iraq increases exports in line with government targets, global oil inventories could build by 1.6 million barrels per day during the demand lull in the second quarter of 2012.
"If OPEC keeps producing at recent levels without paring back production to make room for Iraq and Libya, global inventories could conceivably rise by 2.4 million barrels per day in the second quarter of 2012," analysts predict.
This week Iraqi North Oil Company stated about the plans to increase oil production from 600,000 barrels to one million barrels per day in 2014.
Today, the company produces 600,000 barrels, 450,000-500,000 barrels of which are exported.
Major oil fields of Iraq are Rumaila, Zubair, Nahr Umr, Majnoon and West Qurna in south of the country. Some 80 percent of oil produced in the country is exported. Iraq supplies oil to Jordan, Turkey and Syria.