OPEC supply highest in two years, says survey

oilbarrel-IanBurt-flickrOil supply from the Organisation of Oil Producing Countries (OPEC) in May 2015 has risen to its highest level in more than two years, with record-level outputs from Saudi Arabia and Iraq and increased exports from Angola

The results were revealed by a survey conducted by Reuters. OPEC supply last month rose to 31.22mn bpd from a revised 31.16mn bpd, based on shipping data provided by oil companies, OPEC and consultants. Specially, Saudi Arabia and Iraq have managed to touch record levels, or near-record levels, outweighing smaller oil producing nations. Iraq’s exports stayed above three million bpd whereas Saudi Arabia retained output above 10mn bpd.

However, Angola was the leading producer, having loaded 58 cargoes worth of oil in May as opposed to its original April target based on loading schedules.

On the contrary, Libya posted a decline as supply was disrupted by unrest. In addition, production in Nigeria also fell due to pipeline leaks that prompted Shell’s local venture to declare force majeure (superior force) on exports from the Forcados stream.

Going ahead, the boost from OPEC nations has stretched the overall output above the target of 30mn bpd, highlighting the significance of Saudi Arabia and other major members as key market shareholders.

The OPEC group is expected to meet on 5 June 2015, and the survey has stated that the organisation is unlikely to change its policy. Oil has risen to US$65 a barrel from a low of US$45 a barrel in January 2015, and there are signs of slowing growth in the higher-cost supplies that have been eroding OPEC’s market share.

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