Oil output from the Organization of the Petroleum Exporting Countries (OPEC) rose by about 1 million barrels per day in August, a Reuters survey has found.
This happened as the group and its allies eased record oil supply curbs as the global economy and demand began to recover from the coronavirus pandemic.
The 13-member association pumped 24.27 million barrels per day on average in August, the survey noted, up 950,000 barrels per day from July’s figure and a further boost from the three-decade low reached in June.
OPEC and its allies, known as OPEC+, from May 2020 made a record cut of 9.7 million barrels per day or 10 per cent of global output after the virus destroyed a third of world demand.
However, from August 1, the cut was tapered to 7.7 million barrels per day until December, of which OPEC’s share is 4.9 million barrels daily.
In August, OPEC countries bound by the deal delivered 99 per cent of the pledged reduction, the survey further stated and by comparison, compliance in July was 95 per cent, which means it was better last month.
The biggest rise in supply in August came from Saudi Arabia, which pumped 9 million barrels per day, up 600,000 from July and close to its new quota, the survey disclosed.
The second-biggest rise came from the United Arab Emirates (UAE), which pumped more than its quota after hot weather and people holidaying at home boosted local demand. Kuwait also raised output, remaining in line with its new target.
Smaller increases came from Angola and Algeria.
Iraq and Nigeria, laggards in previous months of the OPEC+ deal, both reduced output, according to the survey, with Iraq reaching its highest compliance in recent years.
The cut from Iraq, though was less than the volume pledged and Nigeria, while boosting compliance significantly remains short of the 100 per cent level, going by the Reuters’ survey.
Meanwhile, the price of OPEC basket of 13 crudes fell to $45.30 a barrel on Tuesday, September 1 from $46.27 the previous day, data released by OPEC Secretariat calculations on Wednesday showed.
The OPEC Reference Basket of Crudes is made up of Saharan Blend (Algeria), Girassol (Angola), Djeno (Congo), Zafiro (Equatorial Guinea), Rabi Light (Gabon), Iran Heavy (Iran), Basra Light (Iraq), Kuwait Export (Kuwait), Es Sider (Libya), Bonny Light (Nigeria), Arab Light (Saudi Arabia), Murban (UAE) and Merey (Venezuela).
