Saudis Pump Record Crude as OPEC Sees Stronger Demand in 2016
The world’s biggest oil exporter pumped 10.564 million barrels a day in June, exceeding a previous record set in 1980, according to data the kingdom submitted to the Organization of Petroleum Exporting Countries. The group expects demand for its crude to rise in 2016 compared with this year as supply elsewhere falters and consumption growth quickens.
OPEC said it expects global oil markets to rebalance as diminished output from rival producers such as U.S. shale drillers whittles away a glut. The strategy is taking time to have an impact, with crude prices remaining 46 percent below year-ago levels and annual U.S. production forecast to reach a 45-year high.
“An improvement towards a more balanced market” is likely in 2016 as consumption grows faster than supply, OPEC’s Vienna-based research department said Monday in its monthly market report. “Momentum in the global economy, especially in the emerging markets, would contribute further to oil demand growth in the coming year.”
Brent crude futures fell 1.8 percent to $57.70 a barrel at 10:51 a.m. local time on the London-based ICE Futures Europe exchange, extending a 2.6 percent loss last week.