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Exxon Tillerson says OPEC discipline erodes amid oil price rise
Published on October 2, 2009 by oilprices · No CommentsOPEC, the source of 40 percent of the world’s oil, has slipped further away from self imposed production limits amid rising crude prices, Exxon Mobil Corp. Chief Executive Officer Rex Tillerson said. Tillerson, in a speech to the Economic Club of Washington yesterday, said OPEC compliance had “been extraordinarily good.”
“At one point they had about 82 percent compliance, which is very good for OPEC,” he said. “It’s running about 65 percent now. When the price of oil got back above 70, some people can’t help themselves.” Irving, Texas-based Exxon is the world’s largest oil refiner.
OPEC members agreed in September 2008 that the 11 countries with quotas would trim output by 4.2 million barrels a day to 24.845 million. Oil ministers meeting last month in Vienna left the target unchanged on an expectation that the global economy would recover and keep demand and prices up.
The Vienna meeting marks the third time this year that OPEC decided against changing production levels. The group’s next gathering is Dec. 22 in Luanda, Angola. Output cuts have left OPEC with 6.105 million barrels a day of spare capacity, a Bloomberg News survey showed. Saudi Arabia can increase production by 2.785 million barrels, the most of any member.
Source: Bloomberg.com