Reuters survey shows 310,000 barrels per day increase in OPEC production

A Reuters poll Monday showed OPEC produced 310,000 bpd more in July to fill gaps from the Nigeria production cut and force majeure in Libya, which has since been lifted.

OPEC produced a total of 28.98 million bpd in July, according to the Reuters survey, representing an increase of 310,000 bpd in July from revised June production figures.

This figure indicates that OPEC members have reached 60% of the production increase agreement reached through OPEC+, which includes Russia.

The survey also noted that around 240,000 bpd of that 310,000 bpd increase came from the 10 OPEC members, with Saudi Arabia accounting for 150,000 bpd of that total, which remains below the production targets of the Kingdom.

The United Arab Emirates, Kuwait and Iraq also increased production, according to the Reuters survey.

The 310,000 bpd increase is still below the 412,000 bpd increase promised by OPEC+. The cartel is currently in the process of phasing out production cuts implemented due to the COVID pandemic in 2020; however, many members struggle to meet the quota requirements set out in the agreement.

The survey comes ahead of a scheduled Aug. 3 meeting of OPEC+, which is also not expected to announce a further rise in production, despite ongoing efforts in Washington to push for an increase in production to lower oil prices. oil price.

The survey also comes as Libya has lifted force majeure on its oil production and exports, with the oil ministry and the National Oil Company (NOC) now saying production has reached 1.2 million bpd– the level it was at before the declaration of force majeure in April.

The Saudis were also filling production gaps from Nigeria, which saw a production drop of 70,000 bpd due to breakdowns and scheduled maintenance.

The investigation also comes shortly after US President Joe Biden intervened. visit to saudi arabiawhich has failed to strike any deal to increase OPEC production in a bid to rein in soaring crude prices.

By Charles Kennedy for Oilprice.com

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