Oil Prices Attracts More Than Quotas

In defiance of quotas Opec members increase output by 500,000 bpd to 24.99 million taking advantage of prices near $30 a barrel caused by fears of a US attack on Iraq.

Opec oil production rose 500,000 barrels a day in September as a recovery in Iraqi exports coincided with a seventh consecutive monthly increase in quota busting by the rest of the cartel.

Cheating by Opec on output quotas rose another 180,000 barrels daily to 2.33 million bpd, despite the group's September 19 decision to leave official limits unchanged, according to the survey of industry officials, supply monitors and analysts.

Production from 10 members with quotas reached 24.03 million bpd, compared to targeted output of 21.7 million.

Total Opec output including Iraq, which has no quota, increased by 500,000 bpd to 24.99 million.

Baghdad lifted UN-monitored exports to 1.1 million bpd, up 320,000 bpd from August, by attracting more customers after dropping an illicit surcharge.

Iraqi exports are expected to rise again in October to about 1.5 million bpd, still short of full capacity of 2.2 million bpd, but closer to its long-term average of 1.7 million.

Several other Opec members leaked extra barrels in September, in defiance of quotas that ministers decided at a meeting in Osaka, Japan to keep in place for the fourth quarter. © &to=http://www.neftegaz.ru' target=_blank>NEFTEGAZ

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