The Organisation of Petroleum Exporting Countries, (OPEC) oil output rose in July by 90,000 barrels per day (bpd) to a 2017 high, led by a further recovery in supply from Libya, one of the countries exempt from a production-cutting deal, a Reuters survey showed.
Even against this development oil prices hit a two-month high on Monday, lifted by a tightening US crude market and the threat of sanctions against OPEC-member, Venezuela.
OPEC basket was USD51.9 per barrel while Brent crude futures were USD52.90 per barrel, their highest since May 25, and West Texas Intermediate (WTI) futures were up 16 cents or 0.3per cent at 49.87 dollars per barrel. The price rise put the crude benchmarks on track for a sixth consecutive session of gains. Prices have risen around 10 per cent since the last meeting of leading members by OPEC and other major producers, including Russia. The group discussed potential measures to further tighten oil markets.
According to a Reuters survey, a reduction in supply from Saudi Arabia and lower Angolan exports helped to boost OPEC’s adherence to its supply curbs to 84 percent. While this is up from a revised 77 percent in June, compliance in both months was said to have fallen from levels above 90 percent earlier in the year. The extra oil from Libya means supply by the 13 OPEC members originally part of the deal has risen far above their implied production target. Libya and Nigeria were exempt from the cuts because conflict had curbed their production. According to the survey, a gain in Libyan and Nigerian output has added to the challenge the OPEC-led effort is facing to get rid of excess supply on world markets.
Author: Staff Writer