Opec aims to add one million bpd of capacity by end-2004

Opec is doing all it can to stabilise the world oil market and will increase spare output capacity by about one million barrels per day (bpd) in the next few months, the president of the producer group said on Monday.
"Opec is doing everything it can to restore order and stability to the market, with a reasonable price that is acceptable to producers and consumers alike," Opec president Purnomo Yusgiantoro said.
In a written statement Purnomo handed to reporters, he said the group continued to hold spare production capacity of one million to 1.5 million bpd, which would allow for an immediate increase in production.
"Furthermore, in response to expected demand growth in the near future, member countries have plans in place to further increase production capacity by around one million bpd towards the end of this year and into 2005.
"In addition, plans for additional capacity expansions are available and could be enacted soon. However, this capacity would, typically, become available around 18 months after commencement of this process," the statement said.
The Organisation of the Petroleum Exporting Countries is estimated to be pumping close to 30 million bpd, the highest level since 1979, in an effort to dampen this year's price rally, which saw US crude strike a record $49.40 a barrel on August 20.
Only Saudi Arabia is reckoned to have any significant spare production capacity and Purnomo, who is also Indonesian oil minister, did not detail where the additional volumes would come from.
World supplies are struggling to keep up with a surge in demand, which is growing at the fastest pace in 24 years, leaving little room for any hiccup in the supply chain.
Disruptions to Iraqi oil exports due to sabotage on pipelines is also keeping markets underpinned, although prices have dropped more than $6 over the last week since oil failed to break up to $50 a barrel.
At 0629 GMT, US light crude futures were trading seven cents up at $43.25.
Iraqi exports from its key southern terminals were running at a reduced 1.4 milion bpd on Monday as engineers worked to repair sabotaged pipelines and would remain reduced for the next five days, an Iraqi oil official said on Monday.
Loadings ran at about two million bpd a week ago before the last spate of sabotage attacks.