Oil output hits record high as Nigeria, Iran boost supplies

THE Organisation of Petroleum Exporting Countries (OPEC) oil output has risen in June to its highest in recent history, as Nigeria’s oil industry partially recovers from militant attacks and Iran and Gulf members boost supplies.

Higher supply from major Middle East producers except Iraq underlines their focus on market share. Talks in April between producers on freezing output failed and have not been revived as a recovery in prices to $50 a barrel reduces the urgency to prop up the market.

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Supply from the Organization of the Petroleum Exporting Countries has risen to 32.82 million barrels per day (bpd) this month, from a revised 32.57 million bpd in May, the survey based on shipping data and information from industry sources found.

That June output figure would be less than the average demand OPEC expects for its crude in the third quarter, suggesting demand could exceed supply in coming months if the cartel does not pump more than current levels.

“We could see a slight supply deficit – it depends on further development of unplanned outages,” said Carsten Fritsch, analyst at Commerzbank in Frankfurt.