OPEC oil production rises to 3-year high

Jan 16, 2012, 13:41 GMT

Vienna - The Organization of the Petroleum Exporting Countries (OPEC) in December raised its total oil output to the highest level since October 2008, as Libya revamped its production, the group said Monday.

OPEC countries produced 30.82 million barrels per day (bpd) in December, 171,000 bpd more than in the previous month, the Vienna-based group said in its monthly market report.

Most of the 12 members of the cartel pumped less oil, while Libya boosted its output to 773,000 bpd, around half of the level before the civil war.

OPEC kept its forecast for growth of global oil demand steady at 1.1 million bpd for 2012.

The report did not comment on Iran's threat to close the Strait of Hormuz in reaction to sanctions over its nuclear programme, except for noting that oil prices have been supported in recent weeks by 'geopolitical concerns in the Middle East.' The strait is a key shipping route for Arab and Iranian oil.

On Sunday, Tehran's OPEC envoy, Mohammed Ali Khatibi warned Arab countries along the Persian Gulf against stepping in and replacing Iranian oil if Western sanctions against it are implemented.

Amid continuing Western tensions with Iran, the European benchmark oil brand Brent rose 0.55 dollars to 110.99 dollars per barrel until about 1300 GMT Monday, while the US brand WTI gained 0.66 dollars to reach 99.36 dollars per barrel.