The Organization of the Petroleum Exporting Countries’ (OPEC) oil output has risen in June to its highest in recent history as Iran and the Gulf member states boosted their oil supply, according to a Reuters survey. Supply from OPEC rose to 32.82mb/d in June, from a revised 32.57mb/d in May.
Iran has achieved a supply increase after the lifting of Western sanctions in January, although the pace of the country’s growth in overtaking Tehran’s share in the oil market is slowing. Gulf producers, Saudi Arabia and the United Arab Emirates, increased supply by 50,000b/d each, and Saudi output edged up to 10.30mb/d due to higher crude use in power plants to meet air-conditioning needs, according to Trade Arabia.
Iraq has become one of the countries with declining supply as it pumped less for a second consecutive month. Exports in the south of the country have been trimmed by maintenance work, power cuts, and higher domestic demand.
Meanwhile, Libyan output rose by 40,000 b/d after the reopening of the Marsa al Hariga crude export terminal in late May.
The higher supply from major Middle East producers, except Iraq, underlines their focus on market share and reflects on the failure to reach an oil freeze plan deal.