A Platts survey by S&P Global Commodity Insights has shown that OPEC-13 cut its crude oil production hit its lowest since August 2021 as of last month.
According to the survey, crude production from OPEC-13, reached a near two-year low in July 2023 as a major voluntary cut by Saudi Arabia took effect.
According to the survey, the latest Saudi Arabia cut as well as disruptions in Kazakhstan and Nigeria more than offset gains in Iran and Iraq, contributing to an almost 1 million barrel per day (bpd) fall in OPEC+ output month on month.
Last week, Nairametrics reported that Saudi Arabia decided to extend its crude oil production cut which began in July, till the end of September 2023.
Meanwhile, the Platts survey showed that OPEC’s 13 members pumped 27.34 million bpd, while Russia and eight other allies added 13.06 million bpd, for a total of 40.40 million bpd.
This was the group’s lowest since August 2021, when major cuts implemented during the COVID-19 pandemic were still being unwound, according to the survey.
The survey also stated that during the period highlighted, Saudi Arabia dropped its production to 9.05 million bpd, which is its lowest level since June 2021.
Meanwhile, the decline was not as steep as its pledged cut, with production falling 940,000 bpd on June volumes.
Note also, that Nigeria saw a 100,000 bpd drop to 1.32 million bpd due to an outage at Forcados terminal after sheen was discovered at the facility early July 2023.
S&P Global Commodity Insights stated further that the survey also found that although Saudi cuts impacted OPEC-13 crude production,
Iranian production was at its highest level since December 2018, at 2.76 million bpd, while Venezuela’s crude production was at its highest level since February 2019 at 810,000 bpd.
According to S&P, the increases were a possible sign that the United States has been relaxing sanctions enforcement as it ramps up pressure on Russia in response to its invasion of Ukraine.
Meanwhile, Venezuela has also been benefiting from looser US sanctions, with imports of diluent (diluting agent) helping boost its heavy oil output.
What you should know
S&P Global Commodity Insights also stated that quotas include voluntary extra cuts implemented by Saudi Arabia, Russia, Algeria, Gabon, Iraq, Kazakhstan, Kuwait, Oman and UAE. Meanwhile, OPEC members Iran, Libya and Venezuela are exempt from quotas.
Brent crude price was $86.34 per barrel as of Wednesday, 9:24 AM (GMT+1).
