RIYADH, Aug 2: Despite hike in Opec oil production during July, crude inventories in the United States hit a larger than expected drop, resulting in a new record high above $78 a barrel price in the global markets.

Crude oil stocks in the world's largest energy consumer tumbled 6.5 million barrels, the Energy Information Administration (EIA) said, surpassing analysts’ expectations for a 700,000 barrel decline.

Petrologistics said in its report that the Opec raised its production in July, mainly due to higher supply from members, including Nigeria, Iraq and Angola. Overall supply from the 12-member Organisation of the Petroleum Exporting Countries was projected in the report to rise 300,000 bpd to 30.7 million bpd, the report said, as Iraq and Angola pumped more.

Iraqi output was reported on course to reach 2.08 million bpd, up from 1.94 million bpd in June, as Baghdad began exporting some Kirkuk crude from its northern fields too. Storage tanks at the Turkish port of Ceyhan received sporadic deliveries of Kirkuk oil by pipeline from Iraq's northern oilfields.

Iraq sold 3 million barrels for shipment in July, the first such sale since January. Opec's 10 members subjected to output quotas, that does not include Iraq and Angola, were to pump 26.9 million bpd, up from 26.8 million bpd in June, said Conrad Gerber, head of Petrologistics, which tracks tanker shipments.

Despite problems, Nigeria reportedly raised supply in July by about 100,000 bpd to 2.12 million bpd, Gerber said. The increase reflects fewer disruptions to the country's oil industry from militant attacks in the Niger Delta.

Iranian oil output was also reported to be on the increase, climbing by 50,000 bpd to 3.95 million bpd, the Geneva-based company said.

Angolan output also rose steadily as new fields off the country's coast come on stream to climb by 30,000 bpd to 1.69 million bpd in July.

Confirming the trend, a Reuter’s survey also confirmed that Opec, excluding Iraq and Angola, pumped more crude oil in July than in June.

A rebound in supply from Nigeria after a spate of outages was termed as responsible for this output increase, the survey showed.

Ten Opec members bound by output targets, all except Iraq and Angola, pumped 26.75 million barrels per day (bpd), up 150,000 bpd from June, according to the survey of oil firms, traders, Opec officials and analysts.

However, the July supply from the 10 countries was still 890,000 bpd less than in October, the survey estimated. Nigeria's output rose because of fewer disruptions to supply caused by attacks on the country's oil industry, while Iranian and Venezuelan supply edged higher in July, the survey found.

Total Opec production climbed to 30.47 million bpd from 30.15 million bpd in June because of higher shipments from Iraq and Angola, according to the survey. Oil has surged more than $8 over the past month despite a bout of risk aversion that has hit equity markets amid escalating subprime lending woes in the United States.

Analysts attribute the bullish sentiment to an influx of fund money, geopolitical tensions, and Opec’s reluctance to raise production.