Arab Oil Producers Boast Over Half Of The World’s Reserves

The eleven Arab countries that comprise the Organization of Arab Petroleum Exporting Countries have combined proved reserves of 710 billion barrels of crude - 55.6 percent of the world's total, OAPEC reported.

In natural gas, OAPEC accounts for 27.7 percent of the global total, with 54 trillion cubic meters, a senior official from the organization said, speaking at the 24th Forum on Fundamentals of Oil and Gas Industry in Kuwait.

The 11 members of the group produced oil and gas equivalent to 25 million barrels of daily crude last year. By comparison, OPEC's total output at the end of the year was 33.08 million bpd.

OAPEC was set up back in 1968 to facilitate economic cooperation among the 11 countries: the UAE, Bahrain, Algeria, Saudi Arabia, Syria, Iraq, Qatar, Kuwait, Tunisia, Libya and Egypt. Most of these, bar Egypt, Syria, Tunisia, and Bahrain, are also members of OPEC.

OPEC reported average daily production of 31.96 million bpd in February in its latest Monthly Oil Market Report. That's down by 140,000 bpd from January, the cartel said, as its members continue to reduce output in line with last November's agreement aimed at boosting prices.

OPEC production last month was estimated at 32.095 million bpd by analysts surveyed by Bloomberg, plus ship-tracking information and data obtained from oil companies. About one-third of the total came from Saudi Arabia, which, at 10.01 million bpd, was still below its quota of 10.058 million bpd. Related: EV Startups Fighting Uphill Battle Against Tesla

Prices last week received a considerable boost from the U.S. air strike on a Syrian airfield following a chemical weapons explosion believed to have been a deliberate attack from the Syrian army on civilians, but the effect of this boost will be limited unless the situation escalates.

Meanwhile, OPEC last week appeared to recommend a six-month extension of the cut deal, acknowledging the agreement had failed to accomplish its goal. But this recommendation was quickly amended: the final statement of the committee overseeing the cuts said that it will just review the grounds for a possible extension.

By Irina Slav for Oilprice.com

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