The Organization of the Petroleum Exporting Countries (OPEC) production increased by 1 million barrels a day in August. This comes as the oil cartel eases production cuts that saw oil production reaching a 30-year low as the pandemic affected global demand.
This was disclosed in a Reuters survey. The report revealed that OPEC pumped 24.7 million barrels a day for the month of August, which was 950,000 bpd higher than the July output.
It was reported that OPEC oil production increased by 1 million barrels per day in the month of July, as the cartel reduced its production cuts. The major gulf members also ended their added voluntary cuts, as the body plans to ease production cuts by 7.7 million barrels a day.
The organisation pumped an average of 23.32 million bpd for the month of July, which is over 900,000 more than June when OPEC production hit its lowest level in 20 years.
The global lockdown ease has seen the price of oil rise above $45 since the record lows of April.
However, there are still concerns that a rebound in coronavirus cases may lead to further lockdowns around the world.
OPEC agreed in May to cut production by 9.7 million barrels, and to reduce the cut by 7.7 million barrels a day. However, it was reported that, OPEC+ said some members would have to reduce the group’s total production by an additional 2.31 million barrels per day in order to deal with its oversupply issues.
OPEC data for the period of May-July showed that Nigeria, Iraq and others did not comply with their production cut quotas for the period, having recorded overproduction of 50,000 barrels per day for the period. Russia, for instance, overproduced by 280,000 bpd while Kazakhstan overproduced by 190,000 bpd for the same period.
The Saudi King, Salman bin Abdulaziz, spoke with Nigeria’s President, Muhammadu Buhari last month on the need for Nigeria to comply with its OPEC+ production quotas. Nigeria, Iraq, and other non-compliant members were placed on extended cuts just before the cartel’s meeting this week.
Nigeria and Iraq reduced outputs for the month of August as both nations complied with their extended OPEC production cuts, with Iraq achieving full compliance for the first time in years. Nigeria did not achieve full 100% compliance of its production cut quota.