OPEC Posts First Oil Output Rise in 2019 Despite Saudi Cuts
EghtesadOnline: OPEC oil output increased in August for the first month this year as higher supply from Iraq and Nigeria outweighed restraint by top exporter Saudi Arabia and losses caused by US sanctions on Iran, a Reuters survey found.
The 14-member Organization of the Petroleum Exporting Countries has pumped 29.61 million barrels per day this month, the survey showed, up 80,000 bpd from July’s revised figure which was the lowest OPEC total since 2014.
Saudi Arabia is not deviating from its plan of restraining output by more than called for by an OPEC-led supply deal to support the market. Despite calls this year from US President Donald Trump on OPEC to raise output, the producers renewed the supply pact in July, according to Financial Tribune.
OPEC’s supply curbs should eventually start to support the price of Brent crude oil, which has fallen from a 2019 high above $75 a barrel in April to $61 on Friday on concern about slowing oil demand and economic growth, analysts at Commerzbank said.
“Even moderate demand growth that can be expected is likely – given the considerable production discipline shown by OPEC – to result in an ongoing tightening of supply and to support rising prices,” Commerzbank analyst Eugen Weinberg said.
OPEC, Russia and other non-members, known as OPEC+, agreed in December to reduce supply by 1.2 million bpd from Jan. 1 this year. OPEC’s share of the cut is 800,000 bpd, to be delivered by 11 members and exempting Iran, Libya and Venezuela.