The Reuters news agency published yesterday a first estimate based on surveys of OPEC’s August production: at 26.4 million barrels, the cartel’s daily output was 340,000 barrels lower than in July and therefore the lowest level since January, notes Barbara Lambrecht, a commodities analyst at Commerzbank.
OPEC production in August is the lowest level since January
“The main reason for this was a significant drop in production in Libya of 290 thousand barrels per day. This reflects not only recent production losses, but also the closure of the Sharara oil field at the beginning of the month. Although Libya is a member of OPEC, it is not bound by production targets. According to the Reuters report, OPEC members bound by quotas are still producing 220 thousand barrels per day above target, which is largely due to Iraq.”
“However, OPEC production could fall further in September: First, if Libya’s oil output is reduced for an extended period of time – on August 28, production was down to just under 600,000 barrels per day, and yesterday “force majeure” was reported for another oil field. And second, if Iraq actually implements the plans it confirmed during the OPEC Secretary General’s visit and reduces its production to less than 4 million barrels.”
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
