Oil exporters group says global oversupply will continue throughout 2016
Opec continued to boost oil production in April driven by Iran and Iraqi increases as the exporters group says it expects global oversupply to continue throughout 2016.
Iran, which is recovering crude production following the lifting of sanctions, added 198,000 barrels a day (b/d) of output to average 3.451 million b/d in April.
Opec estimated based on secondary sources that Iraqi output rose 154,000 b/d to 4.354 million b/d, while the UAE recovered production by 56,700 b/d to 2.78 million b/d.
Opec said in its monthly oil market report that the global oil market is oversupplied and estimated that the glut would continue in 2016 as increased output from its members offset lower production in non-Opec countries.
Opec increased production by 188,200 b/d in April to 32.44 million b/d despite lower output in several countries including Kuwait, Venezuela, Libya and Saudi Arabia, according to estimated based on secondary sources. This is the highest since at least 2008.
Fundamentally, oversupply still persists, and oil output remains high, the 13-member organisation said. Outside the US, there have been consistent signs of declines in non-Opec production, which should likely flip the global oil market into a net deficit in 2017.
Brent crude prices have recovered from a low of under $32 a barrel in January, closing at $47.83 a barrel on 13 May, but remain a long way below the $100-plus prices oil producers enjoyed for the four years to mid-2014.
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