01-08-08 OPEC production reached its highest level so far this year in July on increased barrels from Saudi Arabia and Iraq and a recovery in Nigerian output.
The 13 members of the Organization of Petroleum Exporting Countries pumped 32.675 mm bpd on average in July, up 1.1 %, or 366,000 barrels, from 32.309 mm bpd in June.

After easing in April, OPEC production is up for a third straight month with much of the increase driven by Saudi Arabia following its two pledges to boost output by a total of 500,000 bpd by July to meet increased demand and calm record level crude prices.
Saudi Arabia and OPEC's 11 other members with long-ignored production quotas increased output collectively by 241,000 bpd, or almost 1 %, to 30.225 mm bpd, the survey showed. The increase offset a drop in Libyan production, which fell 155,000 bpd on pipeline maintenance and repair work.

OPEC-12 production was 552,000 bpd above the group's production target of 29.673 mm barrels, according to the survey, which is based on input from oil analysts and industry sources.
Saudi Arabia, the world's biggest oil exporter, produced 9.60 mm bpd on average, up 100,000 bpd from June and 490,000 bpd since April.
Iraq, which isn't limited by OPEC agreements to how much oil it produces, pumped an additional 100,000 bpd to a daily rate of 2.45 mm.

The added production has taken some of the heat out of market concerns about supply adequacy though crude inventories in the US and other big consuming nations -- a supply gauge OPEC watches closely -- remain just in their five-year average range.
US light, sweet crude futures have tumbled about 15 % over the past few weeks on concerns about the health of US and European oil demand since hitting a record $ 147 a barrel in early July. US oil prices traded down around 80 cents $ 123.25 a barrel.

Production in Iran, OPEC's second-largest producer, rose 70,000 bpd to a daily rate of 4.05 mm barrels.
After hitting a two-decade low in June, Nigerian production recovered by 250,000 bpd in July to 1.85 mm bpd after repairs were made to pipelines and other facilities bombed by militants in May and June. The West African state, however, is still widely considered an unreliable producer by oil market players. The country still has around 600,000 bpd of production shut-in due to other militant attacks on energy infrastructure.

OPEC, whose output meets around 40 % of the 86 mm barrels consumed globally each day, is scheduled to have its first formal meeting in six months on Sept. 9 in Vienna.