LONDON--OPEC's oil production rose to its highest in five months
in July, boosted by the reopening of ports and oil fields in Libya,
the oil producers' group said Friday.
In its monthly oil market report, the Organization of the
Petroleum Exporting Countries said Libya's production rose by
200,000 barrels a day last month, bolstering the group's output by
167,000 barrels a day to total 29.9 million barrels a day.
The increase in production came after Libya's government reached
an agreement with rebel forces in July to reopen oil ports and
fields that had been closed for nearly a year, raising hopes that
its exports could begin to rise.
However, despite last month's uptick, ongoing turmoil in the
country has dented hopes of further improvements in its level of
oil production. Fighting between militias at Tripoli airport has
already upset operations at two large fields and several
international major oil companies have evacuated staff.
Meanwhile a deterioration of the security situation in Iraq has
for months shut in production in the country's north. Although the
bulk of the country's oil fields in the south have so far remained
safe, concerns have risen this week about the semiautonomous region
of Kurdistan.
"Until recently, OPEC's hopes were pinned particularly on Iraq,
as it was to shoulder two-thirds of the oil cartel's future
production increases. However, the country is now sliding
increasingly into chaos," analysts at Commerzbank said in a
note.
Political turmoil in member states comes as the group is already
contending with falling market share, challenged particularly by
rising production in the U.S. Last year, OPEC's share of total
global production averaged 43.4% down from 44.6% in 2012, according
to the group's annual statistical report.
This year, OPEC expects demand for its oil to average 29.6
million barrels a day, a downward revision of 100,000 barrels a day
compared with last month, it said.
Write to Sarah Kent at sarah.kent@wsj.com
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