OPEC Claims Oil Production Is Exceeding Market Need

The Organization of the Petroleum Exporting Countries (OPEC) said on Thursday that production of crude oil is exceeding market needs after climbing to 31.62 million barrels per day. The organization then went on to blame geopolitical risk for the high prices at the pump.

The organization points out that prices have been pushed down by $15 per barrel since March to $128.

In its monthly Oil Market Report OPEC states:

“Higher OPEC crude oil production underscores the current trend of plentiful supply in excess of market requirements.”

Secondary reporting sources also confirm that the organization in April pumped 1.62 million barrels per day more than global supply requirements.

The report also states that while exports in Iran declined, other countries stepped up production enough to meet demand.

Helping increase numbers was Saudi Arabia which reportedly pumped 179,000 more barrels per day in April than it did in March.

In December OPEC had placed its supply target at 30 million barrels per day.

The study also found that non-OPEC oil producing countries have upped their oil output to 640,000 barrels per day, that number is an increase of 50,000 barrels per day when compared to the last forecast.

OPEC also claims that a decline in world oil demand growth has stopped as U.S. economic conditions continue to improve and non-OPEC demand continues to rise.

The organization also believes worldwide demand for oil will grow by 900,000 barrels per day in 2012, up 40,000 barrels per day from the organizations April prediction.

Are you surprised gas prices are still so high when demand is being easily met?