OPEC crude production levels rose to an eight year high in June, topping 33.21 million barrels per day, according to a report by the IEA.
OPEC output rose by 400,000 barrels per day in June thanks to increased production from a number of its key producers. Star producer Saudi Arabia pumped an additional 200,000 barrels per day in June, reaching near record levels of 10.45 million bpd.
OPEC production was also buoyed by a recovery in Nigerian production levels after militant attacks had previously decimated production levels in the West African nation. Gabon’s re-introduction to the cartel also helped to swell production levels.
Production levels of 33.21 million bpd represent a year on year increase of 510,000 bpd for OPEC. This will raise eyebrows in some quarters as the cartel continues its strategy of keeping supply levels high, even during the current era of low oil prices.
Non-OPEC production levels decreased slightly by 200,000 barrels per day in June and are expected to plunge by a further 900,000 bpd by the end of 2016, according to the report.