OPEC supply at highest since Aug 2012 – EIA

FXStreet (Mumbai) – According to the Paris based Energy International Agency (EIA), the oil supply from the Organization of Petroleum-Exporting Countries (OPEC) reached its highest level since August 2012.

Output above official supply target

OPEC supply in May edged up to 31.33 million barrels per day (bpd), according to the IEA. Saudi Arabia, Iraq and the United Arab Emirates pumped at record monthly rates to keep output 1 million bpd above OPEC’s official supply target for a third month running.

OPEC Strategy is working..

The EIA report also said the OPEC strategy of competing for market share to crowd out shale investments in the US is working. IEA noting that the US oil rig count has now fallen for 26 consecutive weeks through the week ending 5 June.

The report further says, “however remarkable the drop in the rig count may seem in its rapidity and scale, totaling nearly 60 percent since its October peak, recent improvements in drilling efficiency and productivity in key output areas are no less noteworthy.”

According to the Paris based Energy International Agency (EIA), the oil supply from the Organization of Petroleum-Exporting Countries (OPEC) reached its highest level since August 2012.

(Market News Provided by FXstreet)