LONDON: OPEC maintained Friday that the world has enough oil despite losses from Libya, pointing to rising output from Saudi Arabia and other members and a looming seasonal slowdown in demand. In a monthly report, the Organization of the Petroleum Exporting Countries said February output rose 110,000 barrels per day (bpd) to 30.02 million bpd due to extra supplies from Saudi Arabia, the highest since December 2008 when the group agreed a cut. The report said that with OPEC pumping 30 million bpd, global oil stocks will rise by around 1 million bpd in the first half of this year. It expects demand for its OPEC crude to dip to 28.7 million bpd in the second quarter as the end of the northern hemisphere winter reduces heating needs – lower than the annual average demand for OPEC crude of 29.8 million bpd. In the report, OPEC also said it was ready to take any further action, reiterating that it was able to add close to 6 million bpd to the market if needed. "OPEC continues to closely monitor oil market developments and stands ready to act, as deemed necessary, to support market stability," it said. OPEC has maintained that it does not need to formally raise its oil output, but the latest report adds to signs that oil prices well above $100 a barrel and losses in Libya are encouraging extra supplies from the group. It said oil inventories would rise if OPEC maintained output at February's level and European oil refineries – those most affected by the loss of Libyan crude exports – had time to source replacement supplies. "Despite the onset of the low seasonal demand period, recent disruptions may create some anxiety in the market, providing grounds for increased speculative activity," OPEC said in its report. "Considering the availability of product stocks, refiners should have enough time over the maintenance season to adapt to any new requirements."
