The oproduction recovery in Libya and Nigeria continued in July as the African nations restored output sidelined by civil conflicts.
Libya’s daily output rose above 1 million barrels last month, up more than 150,000 barrels a day.
Nigeria hiked daily production by about 34,000 barrels, reaching about 1.75 million barrels a day. Nigerian officials agreed last month to consider production limits once the country hits 1.8 million barrels a day.
Saudi Arabia, the group’s top producer and de facto boss, pumped above the limit it agreed to last winter, producing 10.07 million barrels a day. The kingdom has cut production well below its quota throughout much of the year, helping to offset weak compliance from other members. The rise is likely due in part to seasonal factors, as the Saudis burn crude to meet higher electricity demand in the summer.
Still, Saudi Arabia and Russia last month warned they would not tolerate cheating and took a tough line with producers.
Two of the laggards, Iraq and the United Arab Emirates, reduced output in July, but were still pumping above their quotas.
The world’s appetite for oil will reach 96.5 million barrels a day this year and 97.8 million barrels a day in 2018, according to OPEC’s latest assessment.
OPEC believes interest rates in developed nations will rise gradually from current low levels, supporting borrowing and economic growth in developing countries. The cartel also sees a reduction in geopolitical tensions in some pockets of the world boosting growth.
“Taken together, this will allow the global economy to enter the coming year with a firm basis to support better-than-projected growth in 2018,” OPEC said in the report.