EIA: OPEC oil output dropped slightly in June
Wednesday, 11 July 2012 | 00:00
Members of the Organization of Petroleum Exporting Countries saw their crude oil production drop slightly in June on lower Saudi output and the possible impact of stronger international sanctions against Iran, the U.S. Energy Information Administration said Tuesday.
OPEC produced an average of about 30.54 million barrels a day of crude oil in June, a 1.2% drop from the level seen in May, the EIA said in its monthly Short Term Energy Outlook.
Part of the drop come from production declines in Saudi Arabia, which saw its June average output drop to 9.7 million barrels a day from 9.8 million barrels a day in May. The Saudi kingdom is OPEC's largest producer and de facto leader.
Iran, which is seeing oil exports and foreign investment curtailed by a dispute with global powers over its attempts to develop a nuclear program, produced 2.9 million barrels a day in June, down from 3.13 million in May.
The U.S. agency said that the long-running decline in Iranian production due to lack of investment could have been accelerated by the effects of sanctions, including the European Union embargo on Iranian oil enacted July 1. The EIA said that "Iranian production fell faster than the prevailing trend in June as unsold or undelivered Iran cargoes tested the limits of available storage capacity," and a combination of production shut-ins, greater-than-expected declines in production capacity or overdue maintenance took place.
Nevertheless, the impact of the newly imposed sanctions remains uncertain, and is "not easily extricated from the effects of sanctions enacted in previous years," as well as from the weakening of Iran's oil industry due to lack of capital and other developments in global oil markets, the agency said.
Angola also saw a slight production decrease, pumping 1.7 million barrels a day in June, down from 1.75 million barrels a day in May.
OPEC's spare crude oil production capacity rose slightly to 2.4 million barrels a day in June, from 2.3 million barrels a day in May.
There are no comments available.