Saudi crude oil output last month fell
to an average of 3.5 mln barrels per day (bpd) from 3.8 mln bpd
in January, Gulf oil sources said.
    They said exports from the Ras Tanurah and Ju'aymah
terminals in the Gulf fell to an average 1.9 mln bpd last month
from 2.2 mln in January because of lower liftings by some
customers.
    But the drop was much smaller than expected after Gulf
exports rallied in the fourth week of February to 2.5 mln bpd
from 1.2 mln in the third week, the sources said.
    The production figures include neutral zone output but not
sales from floating storage, which are generally considered
part of a country's output for Opec purposes.
    Saudi Arabia has an Opec quota of 4.133 mln bpd under a
production restraint scheme approved by the 13-nation group
last December to back new official oil prices averaging 18 dlrs
a barrel.
    The sources said the two-fold jump in exports last week
appeared to be the result of buyers rushing to lift February
entitlements before the month-end.
    Last week's high export levels appeared to show continued
support for official Opec prices from Saudi Arabia's main crude
customers, the four ex-partners of Aramco, the sources said.
    The four -- Exxon Corp <XON>, Mobil Corp <MOB>, Texaco Inc
<TX> and Chevron Corp <CHV> -- signed a long-term agreement
last month to buy Saudi crude for 17.52 dlrs a barrel.
    However the sources said the real test of Saudi Arabia's
ability to sell crude at official prices in a weak market will
come this month, when demand for petroleum products
traditionally tapers off. Spot prices have fallen in recent
weeks to more than one dlr below Opec levels.
    Saudi Arabian oil minister Hisham Nazer yesterday
reiterated the kingdom's commitment to the December OPEC accord
and said it would never sell below official prices.
    The sources said total Saudi refinery throughput fell
slightly in February to an average 1.1 mln bpd from 1.2 mln in
January because of cuts at the Yanbu and Jubail export
refineries.
    They put crude oil exports through Yanbu at 100,000 bpd
last month, compared to zero in January, while throughput at
Bahrain's refinery and neutral zone production remained steady
at around 200,000 bpd each.
 REUTER