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Iraq and Nigeria pushed OPEC production higher in April

OPEC supply rose to 31.04 MMBOPD in April, the highest in more than two years, according to a Reuters survey. The increase puts the cartel’s production even further above demand forecasts for OPEC oil in the first half of the year, although second-half demand is expected to be stronger.

If the total remains unrevised, April’s supply would be OPEC’s highest since 31.06 MMBOPD in November 2012.

Iraq increased production in the north following a deal between Baghdad and the Kurdistan Regional Government, offsetting a slight decline in flows from the south which produces most of the country’s oil. Based on the survey, Iraqi exports this month look set to exceed March’s record high of 2.98 MMBOPD. Iraq hoped to reach 3.10 MMBOPD in April.

Nigerian exports also pushed overall OPEC numbers higher. The country’s largest crude stream, Qua Iboe, returned to more typical export rates, allowing the country to ship more cargos in April, according to the survey.

Saudi production dipped slightly from a record high in March, but remained above 10 MMBOPD due to increases local requirements in power plants.

Iran increased exports after some buyers, who stayed away in March in response to U.S. pressure during negotiations on a preliminary nuclear deal, resumed purchase in April. There was no corresponding increase in Iranian production, sources said to Reuters, as the extra exports were shipped from storage.

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Important disclosures: The information provided herein is believed to be reliable; however, EnerCom, Inc. makes no representation or warranty as to its completeness or accuracy. EnerCom’s conclusions are based upon information gathered from sources deemed to be reliable. This note is not intended as an offer or solicitation for the purchase or sale of any security or financial instrument of any company mentioned in this note. This note was prepared for general circulation and does not provide investment recommendations specific to individual investors. All readers of the note must make their own investment decisions based upon their specific investment objectives and financial situation utilizing their own financial advisors as they deem necessary. Investors should consider a company’s entire financial and operational structure in making any investment decisions. Past performance of any company discussed in this note should not be taken as an indication or guarantee of future results. EnerCom is a multi-disciplined management consulting services firm that regularly intends to seek business, or currently may be undertaking business, with companies covered on Oil & Gas 360®, and thereby seeks to receive compensation from these companies for its services. In addition, EnerCom, or its principals or employees, may have an economic interest in any of these companies. As a result, readers of EnerCom’s Oil & Gas 360® should be aware that the firm may have a conflict of interest that could affect the objectivity of this note. EnerCom, or its principals or employees, may have an economic interest in any of the companies covered in this report or on Oil & Gas 360®. As a result, readers of EnerCom’s reports or Oil & Gas 360® should be aware that the firm may have a conflict of interest that could affect the objectivity of this report.