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OPEC production is at a 2015 high largely due to Saudi Arabia and Iraq

OPEC supply for the month of March 2015 reached 30.63 MMBOPD from a revised 30.07 MMBOPD in February, according to a survey based on shipping data and information from sources at oil companies, OPEC and consultants, reports Reuters. The March production numbers are the highest since October of last year, as Iraq rebounds from bad weather and Saudi Arabia pumps at close to record rates.

Iraq supplied the largest increase in March, a result of southern oil exports recovering from bad weather that delayed tanker loadings, according to shipping data and industry sources. Based on the survey, Iraq’s exports have come close to December’s record high of 2.94 MMBOPD, dependent on whether tankers at the southern ports earlier on Tuesday actually depart in March.

Saudi Arabia increased output to an average of nearly 10 MMBOPD in March, sources in the survey said, due to higher demand from export customers and increased local requirement in new oil refineries. Saudi Oil Minister Ali al-Naimi said on March 22 output was “around” 10 MMBOPD. The highest known Saudi output is 10.05 MMBOPD in 2013.

“The Saudis say they are responding to higher demand and I tend to believe that, looking at the strong refining margins in Singapore,” said an oil consultant. Margins are well above the annual average in Asia, which buys the bulk of Saudi Arabia’s exports.

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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.