OPEC Production Falls in June as Cartel Moves to Prolong Cuts - Bloomberg

OPEC Production Falls in June as Cartel Moves to Prolong Cuts - Bloomberg:

OPEC’s output fell for a seventh consecutive month as the group signaled it would keep supplies restrained at least until the end of the year.

Crude production in June dropped to 30 million barrels a day as U.S. sanctions further curtailed Iranian shipments and Saudi Arabia chose to pare back its output. The supply drop underscores the kingdom’s determination to keep the oil market tight, having just secured an agreement with Russia to extend output cuts for as much as nine months.

June output was 130,000 barrels a day lower than May, bringing the total reduction since the group agreed a fresh round of output cuts last year to about 2.5 million barrels a day. Despite that significant curtailment -- a combination of voluntary cuts and involuntary supply disruptions -- crude has been languishing at about $65 a barrel in London due to fears that global demand is weakening.