OPEC production hit three-year high in July
VIENNA, August 12, 2015 – OPEC announced Wednesday that it had reached a three-year high for oil supplies in July, producing more than 1.5 million barrels of oil per day (bopd) above its 30-million-bopd production ceiling. The number represents a 101,000-bopd boost from production levels registered the previous month.
The 12-member organisation has approached the current low international oil prices differently than it had in the past, when limiting supply kept prices higher. During this low, the organisation has instead opted to maintain its market share by boosting production, much to the dismay of global hydrocarbons investors.
In a mid-July monthly report, OPEC had originally predicted global oil demand to rise by about 1.28 million bopd. However, the organisation now predicts an increase of 1.38 bopd.
Oversupply of 2.87 million bopd caused by OPEC production together with high US output has contributed to prices below $50 per barrel, placing significant strain on many countries, including organisation members such as Libya.