OPEC Says Oil Supply Is Plentiful

OPEC is pumping enough oil to keep world markets more than satisfied and oil prices have been high largely due to geopolitical risk, the oil producing group said on Thursday.

The Organisation of the Petroleum Exporting Countries (OPEC) said its own production had risen in April to 31.62 million barrels per day (bpd) as Iraq ramped up and Libya’s oil industry recovered.

“Higher OPEC crude oil production underscores the current trend of plentiful supply in excess of market requirements,” OPEC said in its monthly Oil Market Report.

Secondary sources now say that OPEC pumped 1.62 million bpd above its supply target in April.

But production figures reported directly by OPEC members to its Vienna headquarters show even higher rates.

Lead OPEC member Saudi Arabia said it produced 10.1 million bpd in April, up 179,000 bpd from March.

And Iran told OPEC its output in April was 3.76 million bpd, steady since February, effectively denying that supply has been impacted by sanctions against Tehran.

Supply from producers outside OPEC is also on the rise, according to the report, with non-OPEC supply growth seen at 640,000 bpd this year, up 50,000 bpd on the previous forecast.

OPEC also said the decline in world oil demand growth had stopped, at least for the short-term, as the US economy stabilises and non-OPEC demand continues to grow.

It said world oil demand would grow by 900,000 bpd in 2012, up 40,000 bpd from its previous assessment in April.