Global oil supply rose in June as compliance with an OPEC-led deal to freeze production showed signs that it was stalling, the International Energy Agency (IEA) noted in its latest market report on Thursday.
The supply of oil rose by 720,000 barrels a day in June across the world and by 340,000 barrels a day in OPEC countries. This was driven by higher production even in those countries subject to an OPEC-led deal to cut production. Saudi Arabia has increased its flows, the IEA said, as well as Libya and Nigeria who are not part of the production freeze.
"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.
The agency also said that "compliance with agreed non-OPEC output curbs improved to 82 percent in June, overtaking compliance from OPEC for the first time since the cut took effect in January."