OPEC Production Rises to 3 Year High

The Organization of the Petroleum Exporting Countries said the group’s production rose to its highest level in more than three years, despite global oversupply that has helped send prices tumbling.

In its monthly oil market report, the 12-nation cartel of some of the world’s biggest oil producers said its members pumped 31.51 million barrels a day in July—its highest level since May 2012, representing an increase of 101,000 barrels a day, compared with the previous month. That is 1.5 million barrels a day above the group’s stated output ceiling of 30 million barrels a day, which OPEC endorsed at its last gathering in June in Vienna.

In the past, OPEC has moved to bolster prices by restraining output. But in the current downward price spiral, the group has instead moved to protect market share, instead of prices. The move comes as a flood of new sources of oil-including CLU5, -3.31%   U.S. shale output and new OPEC production LCOU5, -2.50% —has hit the global oil market at a time when demand forecasts remain cloudy. The result has been a market oversupply, and sharply falling prices.

via MarketWatch

Content is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at info@marketpulse.com. Visit https://www.marketpulse.com/ to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.