Opec oil output hits record

LONDON — Opec’s oil output is likely in August to reach its highest in recent history, a Reuters survey found on Wednesday, as extra barrels from Saudi Arabia and other Gulf members make up for losses in Nigeria and Libya.

Production in top Opec exporter Saudi Arabia has likely reached a fresh record, sources in the survey said, as it meets seasonally higher domestic demand and focuses on maintaining market share.

Other big Middle Eastern producers, except Iran, also boosted output.

Supply from the Organisation of the Petroleum Exporting Countries has risen to 33.50 million barrels per day (bpd) from a revised 33.46 million bpd in July, according to the survey based on shipping data and information from industry sources.

The gain could add to scepticism about renewed Opec talk of freezing output to support prices. Oil has risen towards $48 a barrel from $42 at the start of August, helped by such speculation, but these hopes have waned in recent days.

“Opec does not really want to freeze production,” said Olivier Jakob, oil analyst at Petromatrix. “But it dreams of freezing prices at current levels.”

Supply has risen since Opec in 2014 dropped its historic role of fixing output to prop up prices as Saudi Arabia, Iraq and Iran pumped more. Production has also climbed due to the return of Indonesia in 2015 and Gabon in July as members. — Reuters