Saudi Arabia posted record oil production levels in June, pumping an average of 10.67 million barrels per day, according to OPEC’s monthly report.
Saudi Arabia increased its production levels from 10.55 million barrels per day in June, further illustrating the OPEC cartel’s commitment to defend its market share despite floundering oil prices.
Oil prices continued to slump throughout the month of July as prices fell from $50.35 at the start of the month to a low of $42.46 on 29th July 2016.
Some OPEC producers, including Venezuela and Algeria have called for an emergency producers’ summit to try and halt the downward trajectory of oil prices. However, with OPEC heavyweight Saudi Arabia increasing its production levels to new record levels, it is unlikely that these calls will be heeded.
Analysts estimate that the global oil market is currently oversupplied by approximately 1.5 million barrels per day. The IEA predicts that this figure will worsen in 2017 as global oil demand is set to decline.