Organisation of Petroleum Exporting Countries (OPEC) oil output rose in March to its highest since October 2008. The higher supply from Iraq and further recovery in Libya’s production helped offset a decline in oil shipments from Iran.

The Supply from the 12 members of the OPEC averaged 31.26 million barrels per day, up from 31.16 million in February. 

A survey at oil companies, OPEC officials and analysts found that exports from Iran are falling as some buyers stop or scale back purchases because of sanctions. Concern about Iranian supply has helped drive a 15 per cent rally in oil prices this year to $123 a barrel.

OPEC is pumping far more than its official production target of 30 million barrels per day. In March, the biggest increase in OPEC supply came from Libya, where output continues to recover after the shut down during the uprising against Gaddafi’s regime last year.

Iraq provided the second-largest boost as exports rebounded after weather-related disruptions in February and a new Gulf shipping outlet.