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The quantity of oil supplied to the market by Saudi Arabia in June rose by 445,000 barrels a day to 10.3 million barrels a day, according to the Gulf Oil Review.
The kingdom’s actual production rate was 10.1 million barrels a day last month, compared with 9.8 million in May, the report, published by Petroleum Policy Intelligence, showed.
Upward momentum in the oil price “will need a major improvement in the global outlook, a larger-than-expected supply shock, and an unlikely reversal of output policy from Saudi Arabia,” according to the report. Prices over the next two weeks will probably trade “slightly above the producers’ preferred price of $100 a barrel, as uncertainties about Iran and expectations for stimulus measures outweigh concern about the global economy.”
Brent oil, the benchmark grade for more than half the world’s crude, dropped below $100 a barrel in June for the first time in eight months amid concern that the European crisis will hamper economic growth in Asia and the U.S. Brent traded at $103.91 a barrel as of 12.29 p.m. in London.
Saudi Arabia, the world’s biggest oil exporter, is pumping at the highest rate in more than three decades to calm prices.
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