OPEC oil output rose by almost 400,000 barrels per day (bpd) in June despite production cuts by members as exempt countries played catch up.
Output by all 14 Organization of the Petroleum Exporting Countries members in June rose to 32.61 million bpd, according to secondary sources that the group uses to monitor its production. This is up 393,000 bpd from OPEC's May figure.
Crude oil output increased mostly in Libya, Nigeria, Angola, Iraq and Saudi Arabia, while production showed declines in Venezuela, according to OPEC’s monthly report.
OPEC agreed to cut output by about 1.2 million bpd from Jan. 1 to reduce a glut and support prices. Russia and 10 other non-OPEC states agreed to cut half as much.
A jump in output in Nigeria and Libya, where output had been limited by conflict, has weighed on oil prices. The recovery has prompted more talk among producers about asking them to join the supply cut deal.
Libya pumped 852,000 bpd in June, up from 725,000 in May. Nigeria production rose to 1.73 million bpd, up from 1.64 million bpd in the previous month.
Production from the 11 OPEC members with output targets under the agreement has averaged 29.840 million bpd in June, according to the secondary sources.
That means compliance in June is 97 percent, according to an OPEC calculation. That is lower than in May, as OPEC's published figures for that month point to compliance above 100 percent.
The production cut agreed last year was from levels as assessed by the secondary sources.
OPEC's report showed that Saudi Arabia raised production to 9.95 million bpd in June, according to secondary sources, while direct communication shows Saudi raised output to 10.07 million, up from 9.90 million bpd in May.
The increase takes Saudi production almost in-line with OPEC production target of 10.058 million bpd for the first month this year, although on average in 2017, output remains below the target.
The six secondary sources used by OPEC are the International Energy Agency, oil-pricing agencies Platts and Argus, the U.S. Energy Information Administration (EIA), consultancy Cambridge Energy Research Associates (CERA) and industry newsletter Petroleum Intelligence Weekly (PIW).
Meanwhile, US rig count continued to increase. According to Baker Hughes' latest survey, for the week ending 7 July, total US rig count increased by 12 rigs week-on-week to 952 units. This includes additional five gas rigs, taking the total number to 189 units, and seven oil rigs, taking the total to 763 units. This means that the US oil rig count has risen by 512 year-on-year.