July 3 (Bloomberg) -- The Organization of Petroleum Exporting Countries increased oil production 1 percent in June, as Saudi Arabian output rose to a two-year high, a Bloomberg News survey showed.

OPEC pumped an average 32.52 million barrels a day in June, up 320,000 barrels from May, according to the survey of oil companies, producers and analysts. May output was revised down by 80,000 barrels a day. Output by the 12 members with quotas, all except Iraq, rose 380,000 barrels to 30.09 million barrels.

Saudi production increased 280,000 barrels to an average 9.53 million barrels a day last month, the highest since March 2006. It was the biggest gain among OPEC members last month and represented 88 percent of the overall OPEC increase.

``That's basically what they've been broadcasting, so I don't know if it's anything big or monumental,'' said Kyle Cooper, an analyst at IAF Advisors in Houston. Still, 300,000 barrels a day ``adds up. Over 365 days, it's 100 million barrels.''

Production rose amid record oil prices. Crude oil for August delivery rose $1.72, or 1.2 percent, to settle at $145.29 a barrel today on the New York Mercantile Exchange after reaching a record $145.85. Crude rose 9.6 percent in June.

Saudi Arabia decided unilaterally to boost output by 500,000 barrels a day during June and July, amid record oil prices.

Iranian Production

Iran, OPEC's second-largest producer, increased output by 100,000 barrels a day in May to 3.85 million barrels a day. The country has current production capacity of 4.1 million barrels a day, according to Bloomberg data.

Iranian Oil Minister Gholamhossein Nozari said at the World Petroleum Conference in Madrid yesterday that Iran's current production capacity is 4.35 million barrels a day, and it plans to raise output to 5.3 million barrels a day by 2014.

May's figure was revised down by 70,000 barrels a day as Iran stored its heavier, sour oils in tankers off Kharg Island because of a lack of buyers.

The number of tankers the National Iranian Oil Co. has idling in the Persian Gulf fell to 11 on July 1 from 15 a week ago, according to ship-tracking data compiled by Bloomberg. The 11 tankers have a storage capacity of about 22 million barrels.

Iraqi Oil

Iraqi output fell by 60,000 barrels a day to 2.43 million barrels a day in June, after production rose in May to the highest since October 2002, before the U.S.-led invasion.

Iraq's exports dropped 84,000 barrels a day to 1.928 million barrels a day in June, as weather-related delays disrupted oil flow from the country's southern Gulf ports. Exports of Basrah crude from the south averaged 1.46 million barrels a day in June, down 105,000 barrels a day from May.

Exports from Iraq's northern fields to Turkey's Ceyhan terminal on the Mediterranean Sea rose 21,000 barrels a day to 463,000 barrels a day in June. Iraqi plans to export more than 500,000 barrels a day from the north because of an improved security situation were stymied by technical problems at the Kirkuk fields.

Nigeria's output declined 20,000 barrels a day to 1.88 million barrels a day as attacks on its oil infrastructure continued and striking workers disrupted production.

Royal Dutch Shell Plc, Europe's largest oil company, shut down production at its Bonga field in Nigeria on June 19 after militants attacked the production vessel at the deepwater field 120 kilometers (75 miles) off the country's coast. Shell said June 30 it expected Bonga production to return to full capacity within a few days.

Venezuelan output rose by 20,000 barrels a day in June to 2.34 million barrels a day. Other production figures were unchanged.

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Last Updated: July 3, 2008 17:41 EDT