* Supply rises by 140,000 bpd, led by Libya
* Output falls in Iraq, edges lower in Iran
* OPEC output close to supply target of 30 million bpd
By Alex Lawler
LONDON, July 30 OPEC's oil production rose in
July from June, a Reuters survey found on Wednesday, as a
fragile recovery in Libyan supply outweighed fighting in Iraq
and reduced output from Angola.
Despite the increase, unrest in Africa and the Middle East
is still weighing on supply. That could hinder OPEC's ability to
boost output later in the year, when the International Energy
Agency expects demand for OPEC crude to rise.
Supply from the Organization of the Petroleum Exporting
Countries has averaged 30.06 million barrels per day (bpd) in
July, up from 29.92 million bpd in June, according to the survey
based on shipping data and information from sources at oil
companies, OPEC and consultants.
This puts OPEC's output close to the group's nominal target
of 30 million bpd. Outages in the group, such as in Iraq and
Libya, are effectively helping OPEC to balance the market,
rather than voluntary cutbacks, say analysts.
"OPEC seems to be in control of its production at the
moment, probably due to the external events," said Eugen
Weinberg, commodities analyst at Commerzbank in Frankfurt.
The 12-member OPEC pumps a third of the world's oil. In
July, the largest increase has come from Libya, where supply
rose by 210,000 bpd to 430,000 bpd, the survey found.
Still, a reversal of the rising production trend in the last
few days, as well as battles between rival militias in the
capital Tripoli and fighting in Benghazi, Libya's second city,
put the extent of the recovery in doubt.
"The problem with Libyan production is it is one step
forward, one step back. The situation is quite unstable,"
Commerzbank's Weinberg said.
Top exporter Saudi Arabia raised supply modestly, in part
because of a greater need for crude in domestic power plants,
industry sources said. Some sources said exports had increased.
Nigerian output also edged higher in July, according to
export schedules and crude buyers.
Of the countries with falling output, Iraq's supply declined
by 70,000 bpd, as domestic crude use fell because of the closure
of the Baiji refinery, which was attacked by militants in June.
Supply of Iraqi crude to world markets increased as exports
from Iraq's southern terminals rose to more than 2.5 million bpd
from 2.42 million bpd in June, when technical issues slowed down
shipments, according to shipping data.
Total estimated Iraqi production in June was revised higher
to 3.15 million bpd because production in Iraq's Kurdistan
region was higher than previously thought.
Iranian output slipped in July, the survey found, reflecting
a lower export schedule for the month. Exports had been rising
since late 2013 following a softening of Western sanctions on
Iran over its nuclear work.
(Reporting by Alex Lawler; editing by Keiron Henderson)