OPEC's oil output jumps in June as Saudi Arabia opens the taps to tame crude prices

Saudi Arabia's oil production jumped by nearly 500,000 barrels per day in June as it aims to put more supply into the market to tame the cost of crude.

Output from the 15-member producer group OPEC was up 173,000 bpd as the group prepares to lift production caps in place since 2017.

OPEC forecast that global oil demand will cross 100 million bpd for the first time in 2019, but warned trade tensions could negatively impact the market.

Tom DiChristopher | @tdichristopher
Published 1 Hour Ago Updated 24 Mins Ago

Saudi Arabia hiked its oil output in June to the highest level since the end of 2016, as it aims to cool the market after crude prices recently rose to 3½-year highs.

The jump in Saudi supplies shows the world's top crude exporter is making good on its recent vows to tame oil prices. The kingdom has faced pressure from big crude importers like China and India, as well as President Donald Trump, who worry about negative economic impacts of rising fuel costs.

The increase also comes as OPEC forecast global oil demand will surpass 100 million barrels per day (bpd) next year.

Saudi Arabia reported that it pumped nearly 10.5 million bpd last month, up from just over 10 million bpd in May. Data from independent sources cited in OPEC's monthly report showed a slightly smaller build to just over 10.4 million bpd.

hat pushed production from the OPEC group to more than 32.3 million bpd in June, up 173,000 bpd from the previous month, according to the independent figures. OPEC's total production got a boost of 331,000 bpd from Congo, which began reporting as OPEC's 15th member this month.

OPEC, along with Russia and several other producer nations, has been limiting its output since January 2017 in order to drain a crude glut that sent oil prices to 12-year lows in 2016. However, output from the participating nations has fallen much more than expected, largely due to production problems in several of the countries.

At a contentious meeting last month, the cartel agreed to increase output in light of falling production in Venezuela and looming U.S. sanctions on Iran, the world's fifth biggest oil producer. The producers agreed to start raising output beginning in July, but OPEC's latest monthly report shows several began pumping more last month.

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https://www.cnbc.com/2018/07/11/opecs-oi...s-the-taps.html