The OPEC’s average daily level of oil production saw another high in June 2017. To be more specific, they produced 260K barrels a day more than in May 2017. The biggest gainers in term of oil production were Libya and Nigeria. Those are the OPEC members that didn’t sign the so-called Vienna Accord, which is why they are not obliged to freeze their oil production.
In particular, Libya produced over 1 million barrels of crude oil a day in June. This is the highest production level seen over the last 4 years. By the way, in early 2017, this used to be 690K barrels a day.
At the same time, Iran produced over 3,9 million barrels of crude oil a day in June. This is the highest production level seen ever since the Western world canceled the sanctions against Iran and let it go back to the global market of crude oil.
At the same time, the experts interviewed by Bloomberg assume that both Libya and Iran still have reserves to boost their oil production even higher. The experts are concerned over the possibility of reducing to nothing the OPEC’s effort to curb the oversupply and support declining oil prices.
On July 4, crude oil got slightly cheaper against $49.5/b seen a day before. The thing is that American markets were closed for the holiday (the Independence Day in the USA). Another reason is that the market is waiting for the U.S. crude oil inventories report scheduled for July 6.
