OPEC production levels for June reached a three year high, as the Cartel supplied 31.6mn bpd to global markets. OPEC’s allotted target is around 30mn barrels per day, but increased volumes from Saudi Arabia and Iraq swelled OPEC’s production levels in June.
With oil prices continuing to trade at around 60% of their value at this time last year, the boost in production levels reaffirms OPEC’s commitment to maintaining its market share, rather than raising prices.
Since November 2014, OPEC has raised output by more than 1.3 million bpd. OPEC’s production levels could increase further if a long term deal is struck between Iran and the P5+1 nations over the removal of international sanctions.
“If sanctions were to be eased, additional oil from Iran would flood onto the already oversupplied oil market,” Carsten Fritsch, analyst at Commerzbank in Frankfurt, told Reuters news agency.
At a meeting on June 5th, OPEC kept its policy unchanged, as falling oil prices boost demand and dampen the U.S. shale boom.
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