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Crude oil production from the OPEC alliance actually climbed in August by 40,000 bpd, according to a new survey published by Bloomberg on Friday.
Saudi Arabia’s output may have fallen in August by 170,000 bpd, according to the survey, but Nigeria and Iran’s production increased, largely offsetting Saudi Arabia’s cuts.
Overall, the group produced 27.82 million barrels per day in August, the survey said.
Analysts largely expect Saudi Arabia to extend its 1 million bpd supply cut into October, even though crude oil prices rose to 2023 highs on Friday, with WTI reaching $85 per barrel. Saudi Arabia’s extra cut began in July.
Saudi Arabia produced 8.98 million bpd in August, according to the survey, while Iran boosted production to more than 3 million bpd, and Nigeria’s reached 1.34 million bpd—an increase of 80,000 bpd according to Bloomberg’s survey data, which is based on ship-tracking data, information from officials, and estimates from firms like Kpler and Rystad.
Russia said earlier this week that it had reached another deal with OPEC regarding crude oil supply volumes, promising to provide details of the deal next week.
Earlier this week, a Reuters survey had estimated that OPEC’s total production rose in August by 220,000 bpd over July figures—the first rise since February. According to that survey, OPEC’s production reached 27.56 million bpd in August. Production for the 10 members that are part of the supply cut agreements fell by 10,000 bpd in August, the Reuters survey said.
The OPEC+ group is set to hold a meeting on October 4, although a full ministerial meeting isn’t scheduled until late in November.
The production increase for August comes as a group of 37 economists raised their 2023 oil price forecasts for the first time in four months on the notion that the OPEC+ cuts would offset weak economic growth in China.
By Julianne Geiger for Oilprice.com
Julianne Geiger is a veteran editor, writer and researcher for Oilprice.com, and a member of the Creative Professionals Networking Group.