Global oil supply increased by 300 thousand barrels per day to 100.28 million barrels per day (mbpd), topping the 100 mb/d mark for the first time since January, according to data from the International Energy Agency (IEA) on Friday. The bulk of the increase stemmed from Kazakhstan while "higher flows from the U.S., Brazil, Nigeria and Russia also contributed," according to the IEA's Oil Market Report.
Output in Kazakhstan in June rose by 280 thousand b/d to 2.03 mbpd. Meanwhile, OPEC production fell by 90 thousand b/d to 29.91 mbpd, led by losses from Iran, Iraq and Angola. The cartel's output is hovering at a five-year low, the IEA said.
Crude production in Iran declined by 120 thousand b/d in June to 2.28 mbpd, "hovering at a three decade low as the U.S. seeks to eliminate Iranian exports," the agency said. After exports slowed, output in Iraq fell by 60 thousand b/d in June to 4.72 mbpd and supply in Angola fell by 50 thousand b/d to 1.4 mbpd.
OPEC and its non-OPEC allies led by Russia agreed on July 2 to extend the existing supply cuts for a further nine months through March 2020 in a bid to lower oil stocks amid surging U.S. supplies. As for non-OPEC, oil supply rose by 390 thousand b/d to 64.8 mbpd, on higher output from Kazakhstan, the U.S. and Brazil.
Output in the U.S. rose by 110 thousand b/d to 17.17 mbpd, while production edged up by 40 thousand b/d in Brazil to 2.87 mbpd in June. On the demand side, the IEA estimates that global oil demand will grow by 1.2 mbpd year-on-year to 100.3 mbpd in 2019 and forecasts demand to rise by 1.4 mbpd year-on-year to 101.7 mbpd in 2020.
(Anadolu Agency)
