Saudi Arabia Pumps 9.53 mbpd in June

Oil Trades Near Record as Investors Seek Alternatives to Stocks
By Christian Schmollinger
July 4 (Bloomberg)

Crude oil traded near a record in New York above $145 a barrel, set for a second week of gains, as investors purchased commodities as an alternative to flagging equities markets.

Oil has risen 19 out of 27 weeks this year as money managers bought crude futures rather than U.S. stocks, which yesterday completed the longest streak of weekly declines in four years. The International Energy Agency said July 1 that spare OPEC capacity will shrink by 2013, keeping the market ``tight''.

The Organization of Petroleum Exporting Countries increased production 1 percent in June, as Saudi Arabian output rose to a two-year high, a Bloomberg News survey showed.

OPEC pumped an average 32.52 million barrels a day in June, up 320,000 barrels from May, according to the survey of oil companies, producers and analysts. May output was revised down by 80,000 barrels a day. Output by the 12 members with quotas, all except Iraq, rose 380,000 barrels to 30.09 million barrels.

Saudi Output

Saudi production increased 280,000 barrels to an average 9.53 million barrels a day last month, the highest since March 2006. It was the biggest gain among OPEC members last month and represented 88 percent of the overall OPEC increase.

The world has as much as 5 trillion to 7 trillion barrels of oil yet to be developed, located in ``challenging'' areas or acreage closed to exploration, Saudi Arabian Oil Minister Ali al-Naimi said.

``The limits to future supplies have more to do with politics than with geology and resource availability,'' al-Naimi said in Madrid, speaking at the World Petroleum Congress, where he is receiving an industry award. Concern over supply can be overcome by allowing ``explorers to explore and find hydrocarbons where they aren't allowed,'' he said.