OPEC Output Surges by 300,000barrels Per Day on Nigeria’s Rebound

The oil production output of the Organisation of the Petroleum Exporting Countries, OPEC, soared by 300,000 barrels per day, with Nigeria contributing additional 150,000 in June.

The Cartel’s overall output of 32.73 million bpd shot the body’s output to an eight-year high with Libya tentatively recovering along with steady increases from Saudi Arabia and Iran, according to an S&P Global Platts survey of OPEC, said oil industry officials.

“OPEC’s 300,000-barrel-per-day output rise, sends a strong message over its unwavering market share strategy,” said Eklavya Gupte, Senior Editor for S&P Global Platts.

He added:“If the situation persists, the case for a return to some kind of production cap may gain traction.”

The bloc’s top producer, Saudi Arabia, increased its output further to produce an average 10.33 million bpd in June in order to meet domestic demand. Last summer, Saudi Arabia produced as much as 10.45 million bpd.

The sharp increase in OPEC’s June production affirms a continuation of its market share strategy. Meanwhile, OPEC added a new member in the month, Gabon, and next month Nigeria’s Mohammed Barkindo will take over as the group’s secretary-general.