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OPEC Oil Production Fell by 640,000 BPD in August Amid Regional Disruptions, Reuters Survey Finds
Summary
A Reuters survey found that OPEC's crude oil output dropped to 19.71 million barrels per day in August, a decline of 640,000 bpd, primarily due to disruptions in Saudi Arabia and Iran.
Crude oil output from the Organization of the Petroleum Exporting Countries (OPEC) fell significantly in August, driven by supply disruptions in key Middle Eastern producers, a Reuters survey released Thursday found. The group's production declined by 640,000 barrels per day (bpd) compared to the previous month.
August Production Details
The survey pegged total output from the 11 OPEC members at 19.71 million bpd for August. According to the findings, the decline was primarily caused by new disruptions to Saudi Arabian exports linked to the war in Iran and a U.S. blockade that curtailed Iranian shipments.
This drop in production occurred despite a prior agreement by some members of the wider OPEC+ alliance to raise output. Seven members of the group, which includes allies like Russia, had planned to increase production in August.
Context and Methodology
AdThe regional conflict made the planned production increases impossible, leading to a net decrease in supply to the global market. This development tightens the supply-demand balance and could put upward pressure on crude prices if the disruptions persist.
The Reuters survey compiles its data from a variety of sources to provide a comprehensive view of the market. Its methodology includes:
- Shipping data from financial group LSEG.
- Information from other vessel-tracking firms, such as Kpler.
- Direct information provided by sources at oil companies, OPEC, and consultants.
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