11 August, AtoZForex.com, Lagos – The most crude oil was pumped by Organization of Petroleum Exporting Countries (OPEC) in the last three years was recorded last month. Meanwhile, Iran got back to the highest level ever since international sanctions got full strength of support in the year 2012. About 40 per cent of the world oil supplies is credited to Organization of Petroleum Exporting Countries (OPEC), with recent output being raised by 100,700 barrels per day to 31.5 million.
In the recent release of OPEC’s monthly market report, it was said that this changes needed a citing of sources that are external. Despite Saudi Arabia cutting output towards the end of optimum summer demand, which is their highest adjustment in almost a year these changes were still imminent. Prices of oil fell to six-month low below $50 per barrel last week in London simultaneously as OPEC supplies rises. There was a plunge in global glut as a result of Chinese demand in U.S production. There could be a further expansion in Iran’s output after reaching an agreement with world power on 14 July which will soften the measures on oil exports later in the year in exchange for control or limit on its nuclear activity.
Abhishek Deshpande, an analyst at Natixis SA in London said via e-mail: ” Iran has been rising slowly but surely for a while now,it doesn’t need foreign investment to revamp existing infrastructure and prepare fields, resulting in the small increases you can see now, But the bulk of the increase is expected once it becomes clear sanctions will definitely be lifted“
Iran’s output increased by 32,300 barrels in July to 2.86 million per day, which of course is the highest since June 2012, with Iraq which is OPEC’s second largest oil producer took the lead in gains in last month output, having its production increased by 46,700 barrels per day to 4.1 million.
OPEC supply of oil is set to be increased by OPEC in 2016 by about 100,000 barrel per day. A forecast for consumption is set at 1.3 million barrels per day, or 14 per cent, to 94 million barrels per day come 2016. The projection shows that the growth rate will be slightly lower than this current year. A further plunge in the price of oil may be impending as Iran readies to get back to peak levels of production before the Western sanctions.