Saudi Arabia increased its crude output in June to the highest level in two years as China, India, and President Donald Trump pressured the oil rich nation to increase flow.
The increase comes as the Organization of Petroleum Exporting Nations (OPEC) forecasts global oil demand to surpass 100 million barrels per day (bpd) next year. Saudi Arabia reportedly pumped 10.5 million barrels of oil in June, up from 10 million the month before.
OPEC produced more than 32.3 million bpd in June, up 173,000 bpd from the previous month, according to the independent figures. The group had been limiting production levels to relieve a glut that had bottomed-out oil prices to 12-year lows.(RELATED: Trump: ‘OPEC Is At It Again’)
The cartel agreed to increase production after the U.S. reimposed sanctions on Iran, which contributes roughly 2.4 million barrels a day of crude into the global supply. Analysts estimated that anywhere between 400,000 to 1 million barrels could be at risk once sanctions are fully implemented.
Oil prices are typically determined by the level of production on the international market and geopolitical factors affecting crude producing nations. Trump has exerted continue pressure on OPEC to open the spigots to prevent gas prices from skyrocketing.
“Looks like OPEC is at it again. With record amounts of Oil all over the place, including the fully loaded ships at sea, Oil prices are artificially Very High! No good and will not be accepted!” he tweeted on April 20.
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