Crude oil production continues to fall
As US sanctions further trimmed output in Iran and Venezuela, OPEC’s crude oil production fell by another 246,000 bpd in July compared to June.
CRUDE OIL PRODUCTION DOWN BY NEARLY 250.000 BPD
According to secondary sources, total OPEC crude oil production averaged 29.61 million bpd in July, down by nearly 250,000 bpd from June, and driven by lower output in Saudi Arabia, Iran, Libya, Venezuela, and Nigeria. Iraq and Algeria recorded the largest production increases, OPEC’s secondary sources estimates showed.
OPEC’s report showed that Saudi Arabia deepened its already deep cuts, slashing another 134,000 bpd to have its July production average 9.698 million bpd.
The Saudis intend to keep production well below 10 million bpd—although their quota is 10.3 million bpd—and exports at below 7 million bpd, aiming to tighten the market as demand growth weakens with gloomy macroeconomic prospects.
Iran and Venezuela, both under US sanctions, also saw their production down. Iranian production declined by 47,000 bpd from June to 2.213 million bpd in July, and Venezuela’s output dropped by 32,000 bpd to 742,000 bpd.