MercoPress. South Atlantic News Agency

Oil production data controversy hits markets.

With oil prices breaking records and no immediate prospect of containing market's nerves which are threatening global economic recovery, the Organization of Petroleum Export Countries, OPEC, has been accused of pumping two million barrels per day less than what it officially declares.

British newspaper, "The Business Newspaper" reported over the weekend that after examining OPEC's figures for the last thirty years it concluded the eleven country cartel was actually producing two million barrels less.

The newspaper added that the "false" statistics are used by private and international organization to work on market analyses which have contributed to the current situation of ever increasing prices.

However an OPEC spokesperson rejected the idea that the cartel was making "cosmetics" with statistics and insisted it was pumping 29 million barrels per day, including Iraq.

But oil market analysts in Vienna, where OPEC has its main offices, said they effectively believe the cartel could be exaggerating daily production quotas, since it's advantageous in the current circumstances for each member country to exaggerate as much as possible production levels. Nevertheless the same analysts point out that erroneous production data by OPEC is not necessarily responsible for the current record prices in international markets.

In effect the main factor affecting prices is the scarcity of petroleum: current world production (OPEC and the rest of the world) is currently only 1,5 million barrels per day over hydrocarbons absolute demand.

In his latest statement OPEC's president Purnomo Yusgiantoro from Indonesia said the organization's production was 2 million barrels above the current barrel quota of 28 million and any further increase would have to wait until September.

Soaring demand both from the US and China's fast growing economy combined with security fears have been driving prices higher for months.

The OPEC 30 million daily barrels production includes two million from occupied Iraq under constant threats of disruption by insurgency.

Besides Russian Oil Company Yukos which provides 2% of world production has growing fiscal (and political) problems with the Kremlin which could hinder supply.

This coming Sunday politically volatile Venezuela another leading member of OPEC faces a recall referendum which could also have an impact in the country's supply.

This Monday US light crude closed at 44,77 US dollars the barrel and London Brent crude, 41,56, both new highs.