OPEC output rises in July as Saudi, Libya pump more

Crude oil production from Organization of Petroleum Exporting Countries (OPEC) increased by 173,000 barrels per day (bpd) in July compared to the previous month, driven by higher output from Saudi Arabia, Libya and Nigeria.

Total oil production from the 14 OPEC countries averaged 32.87 million barrels per day (bpd) in July, according to five secondary sources, OPEC said in its latest monthly report.

Saudi Arabia’s crude output rose 31,800 bpd to 10.067 million, slightly above the country’s agreed production limit of 10.058 million, data from secondary sources showed.

The Kingdom’s direct communication on production levels in July was not available.

Libya and Nigeria, both currently exempt from last year’s output cut deal, saw a month-on-month rise in production of 154,300 bpd and 34,300 bpd, respectively, the report said.

Output declined in Iraq, Angola and Venezuela.

OPEC also revised its estimates for global demand and supply for 2017 and 2018. The world oil demand in 2017 is expected at 1.37 million bpd, an increase of 100,000 bpd from last month’s forecast.

For 2018, demand growth is projected to increase by 1.28 million bpd, slightly higher than last month’s projections, with total world consumption averaging 97.77 million bpd.

On the supply-side, non-OPEC growth in 2017 was revised down by 28,000 bpd to 780,000 bpd. For 2018, the non-OPEC supply growth outlook was revised down by 42,000 bpd to 1.1 million bpd.

“The US, Brazil and Canada are expected to be the main drivers of growth, offsetting declines in Mexico, China, Columbia and elsewhere,” the report said.

Estimates on the cartel’s natural gas liquids (NGLs) and non-conventional liquids in 2017 were unchanged from previous month, at 6.3 million bpd.

The group said it expects a growth of 180,000 bpd year-on-year in 2018 due to a number of planned projects, mainly in Iran and Saudi Arabia.

Write to Nadeshda Zareen at nadeshda.zareen@argaamplus.com