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OPEC Oil Output Hits near 8-Year High in June

July 11, 2016 at 17:30 by Andrew Moran

New data released on Monday found that oil output from the Organization of the Petroleum Exporting Countries (OPEC) reached a near eight-year high last month.

OPEC oil production increased by 300,000 barrels per day (bpd) in June to 32.73 million bpd, says a new survey by S&P Global Platts. This is the highest production level since August 2008.

The group reported that OPEC was able to raise its output because of Libya, Nigeria, and Saudi Arabia. Libya and Nigeria have gradually recovered their production capacities to 310,000 bpd and 1.57 million bpd, respectively. Saudi Arabia increased its daily output averages to 10.33 million in June. Iran has also been raising its production efforts to 3.63 million bpd in order to increase market share among OPEC states.

Venezuela was the only member nation that saw its output decrease. The report found that the Latin American country saw its oil output crumble to a 13-year low as it dipped by 120,00 bpd to 2.15 million bpd.

Eklavya Gupte, senior editor for S&P Global Platts, said in a statement:

OPEC’s 300,000-barrel-per-day output rise in June, boosted by fragile recoveries in Libya and Nigeria, and the unrelenting rise in Iran and the increase in Saudi Arabia, sends a strong message over its unwavering market share strategy. If the situation persists, the case for a return to some kind of production cap may gain traction.

Meanwhile, OPEC added a new member this month: Gabon. Also, Nigeria’s Mohammed Barkindo will become the group’s new secretary general.

August West Texas Intermediate (WTI) crude prices fell $0.48, or 1.06%, to $44.93 per barrel at 17:04 GMT on Wednesday on the New York Mercantile Exchange. Brent crude prices also tumbled $0.55, or 1.18%, to $46.21 a barrel.

The next time OPEC will hold its ministerial meeting will be in Vienna on November 30.

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