• Iraq also hits long-term production high
  • Opec production rises further past quota

Saudi oil production reached an all-time record level in June at 10.56 million barrels a day (b/d), according to figures based on direct communication with the country in Opec’s monthly oil report

The kingdom increased its average monthly production by 230,900 b/d compared with May figures amid a period of lower crude prices partly caused by global oversupply.

Iraqi production also reached a long-term record high, expanding by 303,000 b/d to 3.59 million b/d and further cementing its position as the cartel’s second largest producer.

According to Opec data based on secondary sources, the 12-member group of oil exporters produced an average of 31.38 million b/d a June compared with 31.1 million b/d in the previous month. This increase was driven by higher output from Iraq, Nigeria and Saudi Arabia and sees the group further exceed its self-imposed 30 million b/d quota.

Saudi Arabia is the only country in the group with significant spare capacity and appears to be prepared to use this extra potential to increase its market share.

Riyadh was behind the key Opec decision in November 2014 to maintain the organisation’s export quotas to maintain market share as international crude prices plummeted.

The Brent crude price dropped below $60 a barrel for the first time in three months during the first week of July amid fears that fallout from the Greek debt crisis and sharp falls on the Chinese stock market could weaken global demand.