Soaring North American oil output boosts global supply
Total global oil production for the month was 91.8 million b/d in July, an increase of 785,000 b/d year-on-year
Global oil production increased by 575,000 barrels a day (b/d) in July, driven by higher output from non-Opec nations, the International Energy Agency (IEA) said.
Non-Opec oil production reached 54.9m b/d in July, the IEA said, with 40% of the 570,000 b/d production growth coming from Canada and the US. North American oil production is expected to add 1.4m b/d to non-Opec supply in the second half of 2013, bringing total production to 55.4m b/d in the fourth quarter.
Oil output in OECD Europe also increased in July, by almost 170,000 b/d. This was mainly because of a break in North Sea maintenance. However, European oil output is expected to fall sharply in August as maintenance work resumes.
Smaller gains in the OECD Pacific region and non-Opec African nations contributed were responsible for most of the growth, the IEA said.
Opec oil output fell by 165,000 b/d in July, to 30.41m b/d, despite higher output from Saudi Arabia. This was because of supply disruptions in Libya and Iraq, where ongoing civil unrest has disrupted exports.
Iraq’s crude oil production fell below 3m b/d for the first time in five months as increased attacks on the key northern pipeline to the Turkish Mediterranean port of Ceyhan continue to disrupt flows, the IEA said. Iraq’s oil exports are expected to fall by around 500,000 b/d from September as infrastructure work at the country’s southern shipping terminals is expected to start.
Commercial oil stocks were estimated at 2.6bn barrels in June, the IEA said. This month-on-month rise of 11.9m barrels was mainly because of 33.6m barrel build in oil-product inventories which offset crude draws.