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OPEC countries produced 32.44 million barrels per day of oil in April, indicating a 188,000 bpd increase over the month before, while forecasting that the supply glut will last over the course of 2016.
The March to April jump in output is said to be the highest since 2008.
In its Friday report, OPEC noted that “persistent surplus could weigh on prices, which despite a recovery to $47 a barrel from a 12-year low of $27.10 in January, are less than half their level in mid-2014.”
On the price front, the OPEC Reference Basket averaged $37.86/b in April, which represents a 9.3-percent gain, or a gain of US$3.21. Overall, this is 40 percent higher than in January.
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''Oil futures surged more than 8%, with ICE Brent up $3.55 to average $43.34/b, while Nymex WTI rose $3.16 to $41.12/b,'' the report said.
In terms of demand, OPEC’s earlier forecast of a 94.18-million barrel per day figure for this year still stands.
The organization noted that oil demand in 2015 was 92.98 million barrels per day, or 1.54 million barrels per day more than the previous year.
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At the same time, the organization said that non-OPEC supply growth for 2016 was adjusted lower, averaging 56.4 million barrels per day. This figure represents a 0.74-million barrel per day contraction.
OPEC also reduced its forecast for non-OPEC oil production by 10,000 barrels per day.
By James Burgess of Oilprice.com
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James Burgess studied Business Management at the University of Nottingham. He has worked in property development, chartered surveying, marketing, law, and accounts. He has also…