LONDON, July 6 : OPEC oil supply remained some 650,000 barrels per day above the agreed ceiling tn June, a survey found on Monday, reports Reuter.

Wellhead production was estimated to be up by 150,000 BPD to 24.29 million. Supply to the market under■OPBC quota rules — which excludctnove-ment to, but not sales from, producer storage — was seen not much changed around 24.25 millfop.

This compares with a supply celling of 23.6 million BPD set by the Organisation of the Petroleum Exporting Countries.

Failure so far this year to comply with quotas is among reasons why the market is

sceptical about OPEC's ability to cope with likely resumed exports by Iraq. Talks open in New York on Wednesday on terms under which Iraq, whose oil has been embargoed by I he United Nations since ft invaded Kuwait in 1990, would resume limited, UN-supervised sales.

■ ■ Oil prices have dropped-two US dollar in a month, to around 16.65 dollar for the benchmark Brent blend, on OPEC excess and fears of a glut when Iraqi sales resume.

The Reuter monthly OPEC survey seeks a best estimate of wellhead volume from information from Reuter correspondents, industry officials and analysts in OPEC and consumer nations.

Saudi Arabia seems largely

to have accounted for the June wellhead gain. It is assessed at 9.05 million BPD — up 150,000 — which is both the mid-range of monitors" estimates and also the Saudis' own number, industry sources said.

But the Saudis were produc-fng-below the level of their 8.0 million BPD quotojn Apr)! ^nc^ May, making up sales volume from storage. In June, western industry sources said, while wellhead volume rose, they again seemed to be matching supply to quota.

Particular uncertainty again attends estimates of Iran's production. Officials say Iran continues to produce to quota of 3.24 million BPD. but no moni-

tor can be found to support that. Some views rangcd\above 3.7 million, based on an as sessment of likely exports obtained from tanker tracking data and estimates of domestic refinery throughput.

The Reuter survey uses a mid-range estimate for Iran of 3.62 million BPD which is regarded as being subject to revision.

Views on Kuwait in June are in a range of 1.65 1.7 million BPD. just up from May. But "closer to 1.8" was heard.

Nigeria is seen higher than previously reported in May, above 1.9 million BPD, but down by about 50.000 in June.

Output by other OPEC sellers was broadly unchanged.