Global oil supply increased by 720 thousand barrels per day in June to 97.46 million barrels per day (mb/d) compared to the previous month, according to the International Energy Agency’s (IEA) Thursday report.
World oil production in June stood at 1.2 mb/d above that of June 2016, the report said.
OPEC crude oil output rose by 340 thousand b/d to 32.6 mb/d in June, ' the highest level in 2017, after Saudi flows increased and Libya and Nigeria, spared from supply cuts, pumped at stronger rates,' the IEA said.
OPEC compliance with the output cut deal slumped to 78 percent, the lowest rate this year, IEA said.
Additionally, OPEC natural gas liquids and unconventional supplies totaled 6.88 mb/d, leading to overall OPEC liquids production, including crude oil output, of 39.48 mb/d in June.
The largest producer, Saudi Arabia, pumped 130 thousand b/d more in June compared to May. Production totaled 10.05 mb/d, 'the highest this year and just a hair below its 10.06 mb/d output target,' the IEA said.
The call on OPEC crude is forecast to reach 33.6 mb/d during the final quarter of this year, up 1 mb/d on June output, according to the report.
'Provided there is strong compliance with OPEC’s cuts, that would imply a hefty stock draw, even if Libya and Nigeria recover further,' the IEA said.
In June, non-OPEC supply rose by 380 thousand b/d in June to 58 mb/d, 'on seasonally higher biofuels output and as Canadian oil production recovered after outages.'
The agency forecasts that total non-OPEC supply will average 58.1 mb/d this year, a rise of 700 thousand b/d from 2016. In 2018, non-OPEC output is expected to reach 59.5 mb/d.
Additionally, next year's global oil demand is forecast to grow by 1.4 mb/d to 99.4 mb/d compared to this year.
By Zeynep Beyza Kilic
Anadolu Agency
energy@aa.com.tr