OPEC oil output falls in July on Iran -survey

OPEC crude oil output has fallen in July as U.S. and European sanctions have cut supply from Iran and due to reduced shipments from Angola, Saudi Arabia and Libya, a Reuters survey showed on Monday.

Supply from the 12-member Organization of the Petroleum Exporting Countries has averaged 31.18 million barrels per day (bpd), down from 31.63 million bpd in June, the survey of sources at oil companies, OPEC officials and analysts found.


OPEC's production has declined since it pumped 31.75 million bpd in April, the highest since September 2008, based on Reuters surveys.

The biggest drop in supplies this month came from Iran, whose crude is subject to a European Union embargo that started on July 1 barring EU insurance firms from covering Iran's exports.

Iran's supply slipped by 150,000 bpd to 2.80 million bpd in July, according to the survey. That would be its lowest output in more than two decades, according to figures from the U.S. Energy Information Administration.

The U.S. and European sanctions have pushed Iran from its traditional position as OPEC's second-largest producer to rank third behind Iraq, which this year is benefiting from a long-awaited expansion in export capacity.

Angolan output has fallen as oilfield maintenance curbs exports from Africa's second-largest producer. Libyan production was hit early in the month when protests by groups demanding greater autonomy for eastern Libya disrupted exports.

Saudi Arabia trimmed supply slightly because of lower demand from some customers, such as in the United States, sources in the survey said. It still kept output at 10 million bpd, near the highest level in decades.

OPEC is still pumping almost 1.2 million bpd more than its official ceiling of 30 million bpd, despite agreeing to stick to that target at a June 14 meeting.