OPEC countries cut oil production in August by 35,000 bpd: Report
OPEC countries (except Iran, Libya and Venezuela) participating in the OPEC+ deal reduced oil production in August by 35,000 barrels per day (bpd), to 22.565 mln bpd, mainly due to a decrease in production in Saudi Arabia and Angola. This is according to OPEC’s September report, News.Az reports citing TASS.
As part of the deal, ten OPEC countries included in OPEC+ were supposed to reduce production by 1.273 million bpd from the level of October 2022 to 25.416 million bpd.
In August, the real production volume of these countries amounted to 22.565 million bpd, which is 2.851 million bpd below the level stipulated by the OPEC+ agreement.
However, the parameters of the OPEC+ deal do not take into account voluntary production cuts, which a number of OPEC+ countries, including some OPEC states are to adhere to from May 2023 to the end of 2024. The total volume of these cuts is 1.66 million bpd. In addition, Saudi Arabia is further cutting production by another 1 million bpd from July to the end of the year. The kingdom allows for an extension of this measure and an increase in the reduction. Since July, Saudi Arabia has cut production by 1.056 million bpd.
The OPEC+ agreement to cut oil production involves 10 of the 13 OPEC members, as Iran, Libya and Venezuela are exempt from restrictions. In August, oil production in Venezuela decreased by 42,000 bpd to 730,000 bpd, in Libya it increased by 28,000 bpd to 1.154 million bpd, and Iran increased production by 143,000 bpd up to 3 million bpd.
In general, all 13 OPEC countries increased oil production in August by 113,000 bpd to 27.449 million bpd due to increased production in Iran, Iraq and Nigeria.