Matthew Lloyd | Bloomberg | Getty Images
The West Phoenix oil platform, operated by Seadrill Norge AS, right, stands with other unused platforms in the Port of Cromarty Firth in Cromarty, U.K.
Global oil supply rose in June despite an ongoing deal to cut output, the International Energy Agency noted in its latest market report on Thursday.
Crude output rose by 720 million barrels a day in June across the world and by 340 million barrels a day in OPEC countries. This was driven by higher production even in those countries subject to an OPEC-led deal to freeze production.
Saudi Arabia has increased its flows, as well as Libya and Nigeria who are not part of the OPEC-led deal.
“Higher output from members bound by the production pact knocked compliance to 78 percent in June, the lowest rate during the first six months of the agreement,” the IEA said in the report.
Given the high supply, oil prices dropped on average $3 to $4 per barrel in June and are currently trading at similar levels to those seen when the OPEC output deal began.