5 May 2007 - 18:20
  • News Code: 103887
Strategic Petroleum Reserves Down by 940,000 Barrels

TEHRAN – The Strategic Petroleum Reserves in major oil consumer countries have decreased by about 940,000 barrels during the first quarter of 2007.

Javad Yarjani, head of OPEC Affairs and Relations with Energy Forums at the Iranian Ministry of Petroleum noted that during the said period, global demand for OPEC crude along with that of Angola has stood at 30.93 million barrels, but OPEC crude output during the first quarter of 2007 reached 29.99 million barrels. “Therefore, during the said 90 days, Strategic Petroleum Reserves fell by about 940,000 barrels,” he added.

Speaking about the balance in strategic reserves throughout the world, Yarjani noted that the most important factor for steep reduction of prices during the preceding year was increased storage in major consumer countries (including member countries of the Organization for Economic Cooperation and Development (OECD)).

According to reports released by OPEC in 2005, in view of global oil reserves, non-OPEC production, gas condensate production by OPEC, as well as production of unconventional crude varieties, strategic reserves in those countries has increased by 840,000 barrels per day.

At the same time, global oil demand for OPEC crude in 2005 did not go past 30.28 million barrels per day, but the organization’s output stood at an average of 31.11 million barrels per day,” he said.

Yarjani stated that total commercial reserves of consumer countries stood at about 4 billion barrels in 2005 and 957 million barrels was onboard tanker ships en route to export destinations.

Asked about demand for OPEC crude in 2006, the official noted that global demand for OPEC crude oil in 2006 stood at 30.42 million barrels per day while OPEC output stood at 30.9 million barrels per day.

During OPEC meetings in Doha and Abuja, crude oil production by the Organization of Petroleum Exporting Countries was cut by 1.7 million barrels per day to prevent further price fall,” he added.

The official said, “Therefore, instead of adding 840,000 barrels per day to global strategic reserves, they fell by 480,000 barrels per day and OPEC’s decision to slash output at the end of 2006 further decreased those reserves.”

Yarjani noted that oil reserves in consumer countries stood at 4.175 billion barrels during the fourth quarter of 2006 in addition to 900 million barrels onboard tanker ships.

Official statistics show that daily increase in global petroleum reserves has fallen from 840,000 barrels in 2005 to 480,000 barrels in 2006,” he said

News Code 103887

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