The Organization of Petroleum Exporting Countries (OPEC) expects OPEC oil output to rise by 145,000 bpd this July, indicating a decline in commitment to the cut production agreement, a company monitoring OPEC projections said.
"The 14 OPEC members are expected to exceed 33 million bpd in July, an increase of 145,000 barrels per day from June due to increased supply from Saudi Arabia, the UAE and Nigeria," Petro-Logistics chief executive Daniel Gerber said. "July volumes increase more than 600 thousand barrels per day above the average of the first half of 2017."
According to figures from secondary sources used by OPEC to monitor supply, the Organization's production increased by 393,000 barrels per day in June to 32.611 million barrels per day, led by Nigeria and Libya, as well as additional supply from Saudi Arabia and Iraq.
The oil world was shocked last Monday by the news that Ecuador sought to increase its oil production, which revealed publicly the violation of the OPEC agreement to reduce production, and Ecuador has not been able to reduce production by 26 thousand barrels per day to the need for its economy for more revenue and the increasing exposure to the fiscal deficit.
For several months, OPEC's commitment was 100 per cent, thanks largely to Saudi Arabia's cutbacks in production than necessary, but in June the commitment was reduced to 92 per cent because the group pumped more oil, Riyadh has stopped carrying a lot of burdens.