Saudi Arabia has exceeds the production cap set by OPEC, reaching 10.07 million b/d in June, surpassing the limit of 10.058 million, Bloomberg reported.
The boost in production is considered to be the first time for the oil producing country to exceed its limit since its cutting production deal with the OPEC, Seeking Alpha informed.
During the summer months, Saudi Arabia usually increases its production to satisfy the growing demand for power generated by the over usage of air conditioning, decreasing the output needed for exports. The Demand for power grew, even more, this year in June because of the fasting month of Ramadan, when millions of Muslims visit Saudi Arabia, according to Sadad al-Husseini, a former Executive Vice President at Saudi Arabian Oil Company.
Saudi Arabia increased its output from 9.88 million b/d in May, exceeding the limit of 10.058 million it agreed upon with the OPEC and other oil exporters like Russia. The World’s biggest oil exporter signed a deal with the OPEC in December stating that the Gulf country will reduce its production by 486,000 b/d.
In May 2017, The OPEC members decided to extend their production cuts through March 2018, since the oil market still needs to stabilize.
Saudi Arabia increased its production, despite the decrease of the global Brent price which recorded $49.13 on 17th of July.