OPEC oil output rises to highest since 2008: Survey

NEW YORK - The Organisation of Petroleum Exporting Countries’ crude output rose in July to the highest level since December 2008, led by gains in Saudi Arabia and Angola, a Bloomberg News survey showed.

By (Reuters)

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Published: Sun 31 Jul 2011, 11:11 PM

Last updated: Tue 7 Apr 2015, 4:42 AM

Production increased 245,000 barrels, or 0.8 percent, to average 29.565 million barrels a day, according to the survey of oil companies, producers and analysts. Daily output by the 11 members with quotas, all except Iraq, climbed 230,000 barrels to 26.845 million, two million barrels above their target.

OPEC cut its quotas by 4.2 million barrels to 24.845 million barrels a day beginning in January 2009 as demand fell during the last recession. The group’s June 8 meeting broke up without an accord, the first time in at least 20 years members couldn’t agree on quotas. Saudi Arabia and other Gulf states wanted OPEC to boost output by 1.5 million barrels a day. “The Saudis made no secret at the last meeting that they were unhappy and were going to pump more regardless of the lack of agreement,” said Rick Mueller, a principal with ESAI Energy, LLC in Wakefield, Massachusetts. “Kuwait and the UAE are boosting output, but the biggest increase is from the Saudis.”

Saudi Arabia increased output by 100,000 barrels, or 1.1 per cent, to 9.4 million barrels a day, the highest level since September 2008. Ali Al Naimi, the Saudi oil minister, said after the June 8 meeting that the kingdom is “committed to supplying the needs of the market regardless of the disagreement.”

The Saudi gain was the second biggest after Angola. June production was revised 90,000 barrels higher. The country exceeded its quota by 1.349 million barrels this month. “The Saudis are trying to keep prices under control and when these additional barrels show up, oil prices should drop,” said Michael Lynch, president of Strategic Energy & Economic Research in Winchester, Massachusetts. –

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