Investing.com- Crude oil production by OPEC countries rose in June, the Organization of the Petroleum Exporting Countries and Russia stated in its monthly report.
Total production of OPEC countries rose by 173,000 barrels per day (bpd) in June to 32.3million bpd. The boost was lead by supply increases from Saudi Arabia, which pumped nearly 10.4 million bpd last month, up from 10 million bpd in May, according to independent sources. Meanwhile production declines in Venezuela and Libya continued.
OPEC agreed in June to raise output at a nominal increase of 1 million barrels a day (bpd) amid pressure from the U.S. to decrease prices. While OPEC members are expected to add around 700,000 barrels a day, non-OPEC oil suppliers led by Russia would add the rest.
Global oil demand growth will slow to 1.45 million bpd in 2019 from 1.65 million bpd in 2018, the organization said. The forecast for 2018 was unchanged.
Non-OPEC oil supply in 2019 is forecast to grow by 2.1 million bpd, unchanged from 2018, as supply in North America increase and new projects in Brazil take off. Meanwhile U.S. shale oil growth is expected to slow down in the second half of 2018 and continue into 2019 amid capacity constraints.
However the forecasts are made with the assumption that trade tariffs are not increased and current trade disputes are resolved, the organization said. Global markets have been on edge in recent months amid trade battles between the U.S. has taken against China, Europe and other countries.
"Hence, if trade tensions rise further, and given other uncertainties, it could weigh on business and consumer sentiment," OPEC said. "This may then start to negatively impact investment, capital flows and consumer spending, with a subsequent negative effect on the global oil market."
After the report, U.S. West Texas Intermediate (WTI) crude futures fell 0.93% to $73.42 a barrel by 8:12 AM ET (12:12 GMT).
Brent crude futures, the benchmark for oil prices outside the U.S., decreased 1.65 cents, or 2.10%, to $77.20 a barrel.
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