OPEC crude-oil production rose further in July, in the latest sign the cartel’s efforts to reduce output and drain a global supply glut are falling short. The Organization of the Petroleum Exporting Countries’ output rose by roughly 0.5%, to 32.87 million barrels a day last month, up by 172,600 barrels from June. The uptick, which was smaller than the prior month’s increase, was driven by higher production in Libya, Nigeria and Saudi Arabia, according to OPEC’s closely watched monthly market report. The report comes as Saudi Arabia—OPEC’s largest member and the world’s biggest crude exporter—has been pressuring other members of the cartel for better compliance with an agreement to curb production output. OPEC and 10 producers outside the cartel including Russia first agreed late last year to cap their production at around 1.8 million barrels a day lower than peak October 2016 levels, with the aim of alleviating global oversupply and boosting depressed prices. But the deal, which was extended in May through March 2018, has failed to have a significant impact on prices. OPEC revised upwards its forecast for global oil demand growth this year by 100 thousand barrels a day, saying it now expects growth of 1.37 million barrels a day in 2017. For 2018, world demand is projected to grow by 1.28 million barrels a day, compared with 2017 levels, the cartel said. An expanded version of this report appears on WSJ.com