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OPEC points to larger oil surplus in 2016 as it pumps more

A worker checks the valve of an oil pipe at the Lukoil company owned Imilorskoye oil field outside the West Siberian city of Kogalym, Russia, in this January 25, 2016 file photo. REUTERS/Sergei Karpukhin/Files

LONDON (Reuters) - OPEC pointed to a larger oil supply surplus on the world market this year than previously thought as Saudi Arabia and other members pump more oil, making up for losses in non-member producers hurt by the collapse in prices.

The Organization of the Petroleum Exporting Countries pumped 32.33 million barrels per day (bpd) in January, the group said in a monthly report on Wednesday citing secondary sources, up 130,000 bpd from December.

OPEC’s extra barrels come as the group expects the pace of oil demand growth to slow down in 2016, and more than offset a forecast of a slightly larger than expected supply contraction from non-OPEC producers.

The report points to a 720,000-bpd excess supply in 2016 if the group keeps pumping at January’s rate, up from 530,000 bpd implied in last month’s report.

Reporting by Alex Lawler; editing by Jason Neely

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