OPEC output up to seven-month high in June
Oil demand normally rises as refineries end periods of spring maintenance, boosting the need for OPEC crude. Crude hit a record high of $75.40 a barrel on Wednesday on concern about gasoline supply in the U.S. 'OPEC production needs to be going up,' said Adam Sieminski, chief energy economist at Deutsche Bank. 'Demand is still rising and the world economy seems to be doing alright.'
June's supply was the highest since November 2005, when OPEC produced 29.99 million bpd, according to surveys. Output in May was revised down to 29.54 million bpd.
But the survey also showed that output from the 10 OPEC members bound by supply limits, all except Iraq, remained below their 28 million bpd target for a sixth month this year.
Saudi Arabia kept supply steady in June at 9.2 million bpd, suggesting production has yet to rise from April, when the kingdom cut output due to lower seasonal demand.
OPEC is the source of more than a third of the world's oil.
Output from the 10 members with quotas rose 120,000 bpd in June to 27.76 million bpd.
Iraqi exports in June rose to their highest since October 2004 as crude from the country's Kirkuk oilfields began flowing to Turkey's Ceyhan port.
Shippers surveyed by Reuters pegged exports at 1.62 million bpd, up from 1.50 million bpd in May. An Iraqi oil official put shipments slightly higher at 1.66 million bpd.
The Iraqi army has taken over security of the pipeline to Ceyhan, which has been mostly idled due to sabotage attacks since the invasion in March 2003.
Iran is also pumping more. Supply from OPEC second largest producer rebounded to 3.83 million bpd in June.
Iranian output was 3.75 million bpd in May, less than earlier estimated, because of limited demand for heavier crudes that are harder to process into fuels.
Iran is using oil tankers to hold about 20 million barrels of mainly Soroush and Noruz crude due to difficulty finding buyers for the grades, according to industry sources.
Supply fell in some of OPEC’s smaller producers. Indonesia pumped 900,000 bpd, a 35-year low, in June because several fields were shut for maintenance, an industry source said.
The Asia-Pacific region's only OPEC member has struggled to maintain production as the country has failed to tap new oilfields fast enough.
Output in Nigeria, OPEC’s largest producer in Africa, was steady at 2.3 million bpd after rising in May.
Two new Nigerian fields, Exxon Mobil's Erha and Royal Dutch Shell's Bonga, have helped offset supply shut down due to attacks by rebels on oil installations.
OPEC quotas exclude condensate and natural gas liquids and apply to supply rather than wellhead output, defined to exclude movements to, but not sales from, storage.
Saudi and Kuwaiti data includes Neutral Zone. Saudi data excludes oil produced for Bahrain. Venezuelan data includes upgraded synthetic oil.