OPEC's oil production rose in July, led by the UAE and Saudi Arabia, according to a survey
A survey on Friday found that OPEC oil production increased in July following an OPEC+ deal to increase production. However, the rise was limited due to Iraq's additional cuts and drone attacks on Kurdish fields.
According to the survey, the Organization of the Petroleum Exporting Countries (OPEC) pumped 27,38 million barrels of oil per day in June, an increase of 270,000 bpd over the revised total for the month. The United Arab Emirates, and Saudi Arabia, were the two countries that saw the biggest increases.
OPEC+ - which includes OPEC, its allies, including Russia - is accelerating the plan to undo its latest layer of production cuts. Some members must also make additional cuts to compensate earlier overproduction. This should, theoretically, limit the impact of price hikes.
According to an agreement between eight OPEC+ member countries covering July production, five of the eight OPEC+ nations - Algeria Iraq Kuwait Saudi Arabia and UAE - had agreed to increase output by 310.000 bpd, before the effects of compensation cuts of 175,000 bpd each for Iraq, Kuwait and UAE.
According to the survey the actual increase of the five was about 150,000 bpd.
Saudi Arabia's June supply was revised upwards by 50,000 bpd, after it reported that in OPEC’s monthly report for July it had supplied 9.36 millions bpd.
Iraq's oil production has decreased due to compensation cuts, and drone attacks on Iraqi Kurdistan's oilfields.
The UAE increased its output by around 100,000 bpd but still pumped less than their OPEC+ quota.
Many outside sources place the output of Iraq and the UAE higher than what the countries themselves claim.
Other estimates, like those from the International Energy Agency (IEA), say that they pump significantly more.
The survey aims at tracking the supply of oil to the market. It is based on data flows from financial group LSEG and other companies who track flows, such as Kpler. Information was also provided by sources from oil companies, OPEC, and consultants. Ahmad Ghaddar contributed additional reporting. Mark Potter edited the article.
(source: Reuters)
