Norway to lift production from 1.5 million to 1.2 million bpd

by The Associated Press

Norway, the world’s third-largest oil exporter after Saudi Arabia and Russia, will lift a voluntary 5 percent cut in its oil production at the end of June because of an improved petroleum market and a possible need to stabilize prices, the oil minister announced June 20.

Norway reduced production by about 150,000 barrels per day for the January through June period to help the Organization of Petroleum Exporting Countries cut supply to counter a price fall.

Oil Minister Einar Steensnaes said the decision was made based on higher oil prices and projections of greater demand in the second half of the year.

Even though it is not an OPEC member, this northern nation of 4.5 million people often cooperates with the cartel’s efforts to manage the volatile world oil market.

He said oil prices, which were in the $16 to $17 per barrel range when the decision to hold back production was made, were currently up to $24 to $25 per barrel.

A ministry statement said demand for oil was expected to increase by 1.5 million to 2 million barrels per day by the end of 2002.

Norway, which has a production capacity of about 3.2 million barrels per day, will resume full production on July 1.