Business | Oil & Gas
Opec's production rises marginally in June
The Organisation of Petroleum Exporting Countries (Opec) increased oil production one per cent in June, as Saudi Arabian output rose to a two-year high, a Bloomberg News survey showed.
- Bloomberg
- Published: 23:14 July 5, 2008
Dallas: The Organisation of Petroleum Exporting Countries (Opec) increased oil production one per cent in June, as Saudi Arabian output rose to a two-year high, a Bloomberg News survey showed.
Opec pumped an average 32.52 million barrels a day in June, up 320,000 barrels from May, according to the survey of oil companies, producers and analysts. May output was revised down by 80,000 barrels a day. Output by the 12 members with quotas, all except Iraq, rose 380,000 barrels to 30.09 million barrels.
Saudi production increased 280,000 barrels to an average 9.53 million barrels a day last month, the highest since March 2006. It was the biggest gain among Opec members last month and represented 88 per cent of the overall Opec increase.
"That's basically what they've been broadcasting, so I don't know if it's anything big or monumental," said Kyle Cooper, an analyst at IAF Advisors in Houston. Still, 300,000 barrels a day "adds up. Over 365 days, it's 100 million barrels."
Record prices
Production rose amid record oil prices. Crude oil for August delivery rose $1.72, or 1.2 per cent, to settle at $145.29 a barrel on Friday on the New York Mercantile Exchange after reaching a record $145.85. Crude rose 9.6 per cent in June.
Saudi Arabia decided unilaterally to boost output by 500,000 barrels a day during June and July, amid record oil prices.
Iran, Opec's second-largest producer, increased output by 100,000 barrels a day in May to 3.85 million barrels a day. The country has current production capacity of 4.1 million barrels a day, according to Bloomberg data.
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