September 08, 2023 07:31 GMT
OPEC+ Output Rose in August As Fragile Five Output Offsets Cuts: S&P
OPEC+ crude oil output in August rose by 120kbpd to 40.52mbpd as increases from Iran, Iraq and Nigeria more than offset further reductions by Saudi Arabia and Russia, according to the latest Platts survey by S&P Global Commodity Insights.
- Saudi Arabia’s crude production stood at 8.95mbpd, down by 100kbpd month on month and the lowest level since May 2021.
- Russian output fell by 20kbpd month on month to 9.4mbpd in August, meaning Russia exceeded its pledged 500kbpd output cuts. The Russian Energy Ministry puts Russia’s February baseline at 10mbpd, while OPEC secondary sources estimated February output at 9.949mbpd.
- Production levels from countries included in the fragile five – Iran, Iraq and Nigeria – have more than offset cuts from Russia and Saudi Arabia.
- Iran’s crude oil production stood at 2.95mbpd in August, the highest level since November 2018 and up from 2.76mbpd in July.
- Production in Iraq grew by 110kbpd on the month to 4.32mbpd in August, amid higher domestic demand.
- Nigerian production in August rose by 60kbpd to 1.38mbpd as loading resumed at the Forcados terminal.
- The OPEC+ alliance collectively continues to produce significantly below its quotas, with the total shortfall of 1.1mbpd. OPEC countries that are taking part in the cuts produced 687kbpd below their combined quotas in August, with many African members having struggled for months to reach their targets.