OPEC’s crude oil production was 27.45 million barrels per day in August, according to the group’s latest Monthly Oil Market Report (MOMR) published on Tuesday.
A gain of an average of 113,000 bpd was recorded for OPEC’s August output, led primarily by Iran and Nigeria—both exempt from the production quotas. Saudi Arabia’s production declined as expected, by 88,000 bpd to 8.967 million bpd. Production declines were also seen from Algeria, Angola, Congo, and Venezuela.
Venezuela’s production fell by 42,000 bpd, to 730,000 bpd.
Iran’s oil production increase to 3 million bpd comes despite U.S. sanctions, which analysts see as not being strictly enforced as the United States seeks to improve relations between the two countries as U.S. President Joe Biden continues to battle high gasoline prices at the pump. The Administration has denied that it is not enforcing sanctions against Iran.
Iran continues to heavily discount its crude oil to China, analysts have said.
Nigeria’s August production was 98,000 bpd higher than July’s production figure, although July’s production figure was under June’s. Nigeria’s June production was 1.320 million bpd—higher than August’s 1.269 million bpd.
Angola’s production fell by 60,000 bpd to 1.115 million bpd, while Algeria’s fell 26,000 to 933,000 bpd.
By percentages, the largest production decline was seen by Congo at 6%, which saw its production fall from 270,000 bpd to 255,000 bpd. The largest percentage production hike came from Gabon at 11%, going from 204,000 bpd in July to 215,000 bpd in August. Saudi Arabia’s decrease represented a decline of 1%.
While OPEC’s crude oil production dipped in August, its share of the total global production increased in August by 0.1%, standing at 27.2%.
OPEC estimates that total non-OPEC liquids production, including OPEC NGLs, fell by 100,000 bpd in August to 73.3 million bpd—2.3 million bpd higher year over year.
By Julianne Geiger for Oilprice.com
- Hedge Fund Partner Blasts Oil Demand Decline Narrative
- Germany Passes Modified Fossil-Fuel Heating Law
- European Parliament Approves Higher Renewable Energy Targets