OPEC oil output climbs in June as Saudi opens taps: survey

Oil output from the Organization of the Petroleum Exporting Countries (OPEC) rose in June as Saudi Arabia pumped at a near-record rate, a Reuters survey found, a sign the world’s top exporter is heeding calls from the US and other consumers for more oil.

OPEC pumped 32.32 million barrels per day (bpd) in June, the survey found, up 320,000 bpd from May. The June total is the highest since January 2018, according to Reuters surveys.

Saudi Arabia’s move comes as US President Donald Trump has been urging Riyadh to offset losses caused by new US sanctions on Iran and to dampen prices, which this year hit $80 a barrel for the first time since 2014.

OPEC and a group of non-OPEC countries agreed last month to return to 100 percent compliance with oil output cuts that began in January 2017.

“We are entering the second half of the year with a huge amount of uncertainty surrounding the supply side of the equation,” said Tamas Varga of oil broker PVM.

“Depending on your belief you could just as easily bet on $100 as $60 by the end of the year.”

Saudi Arabia said the OPEC decision would translate into an output rise of about 1 million bpd, although the group’s statement gave no clear volume.

Another Reuters survey showed Saudi Arabia had boosted supply to 10.70 million bpd in June, close to the record high of 10.72 million bpd, to make up shortfalls in Venezuela and other countries, and expected losses in Iran.