MercoPress. South Atlantic News Agency

OPEC pumping over 30 million bpd

OPEC, the Organization of Petroleum Exporting Countries announced Tuesday in Kuwait that during May country members belonging to the cartel are increasing daily oil production to 30,3 million bpd. This represents a daily increase of 600,000 barrels, said OPEC's president Ahmed Fahd Al-Sabah.

"Production from OPEC's eleven members increased to 30,3 million bpd, from 29,7 million", reported OPEC's president who on Monday had said that the oil market was "over supplied" and any future increase in production must take into account prices evolution and demand.

Mr. Ahmad Fahd al-Sabah actually said that there was "an over supply in the market of two million bpd" and anticipated that demand forecasts for the third quarter were in the "range of 28,5 million bpd". He also revealed Saudis were pumping close to ten million barrels per day, the highest ever in 25 years.

However on Tuesday, crude was operating in world markets in the range of 52 US dollars per barrel given growing concerns over inadequate refining capacity and strong demand for the rest of the year.

Apparently seasonal demand in the third and fourth quarters is big question marks for market analysts following Algiers's Oil Minister Chakib Khelil statement that "what's the use of having abundant crude if it can't be refined or there's lack of sufficient storing capacity for the different products?"

Crude oil prices in United States are still only six US dollars below the record 58,28 US dollars per barrel of last month.

OPEC's president Ahmad Fahd al-Sabah, finally stated that "we need to continue producing 30,3 million bpd during the third and fourth quarters since prices have began to stabilise".