OPEC Output Drops 1.2 Percent on Libya-Led Disruptions, IEA Says

OPEC crude oil production in June dropped by 370,000 barrels a day, or 1.2 percent, mainly because of worsening supply disruptions in Libya, Nigeria and Iraq, according to the International Energy Agency.

The 12 members of the Organization of Petroleum Exporting Countries pumped 30.61 million barrels a day last month compared with 30.98 million barrels in May, the Paris-based IEA said today in its monthly oil-market report. That level still exceeds a target of 30 million that the group reaffirmed at its last meeting on May 31.

“Mounting civil unrest by oil workers in Libya led to shut-ins of oil fields and export terminals while oil theft activity in Nigeria inflicted further damage to oil infrastructure,” the IEA said. “Iraq output was constrained by pipeline damage in the north and bad weather in the south.”

OPEC, which supplies about 40 percent of the world’s crude, estimated that its own production fell to 30.38 million barrels a day last month, according to a report yesterday by the Vienna-based group based on secondary estimates. A drop in Libyan output of 207,000 barrels a day led the decrease, along with cuts by Nigeria and Angola, OPEC said.

The IEA reported that Libyan crude production fell by 200,000 barrels a day last month to 1.15 million barrels and that Iraq’s output hit a three-month low when it decreased by 150,000 barrels a day to 3.05 million barrels. Nigeria’s output fell for a third consecutive month in June, dropping by 70,000 barrels a day to 1.88 million barrels, the IEA said.

Saudi Increase

Output from Venezuela, Algeria and Kuwait also declined in June, while production was unchanged in the United Arab Emirates, Qatar and Ecuador, according to the agency.

“Marginally higher output from Saudi Arabia, Iran and Angola partially offset reduced supplies from other members,” it said.

Saudi Arabia’s crude oil output rose by 100,000 barrels a day to 9.7 million barrels a day, the highest level in seven months, on increased domestic demand for crude during the peak summer cooling season in the desert country, the IEA said. Iran’s production was 2.7 million barrels a day in June, up 20,000 barrels a day from the previous month, it said.

OPEC comprises Algeria, Angola, Ecuador, Iran, Iraq, Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, United Arab Emirates and Venezuela.

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