- Nigeria reduces output.
The latest survey by S&P Global Platts has revealed that the Organization of Petroleum Exporting Countries (OPEC) pumped its lowest barrels in more than five years this July.
The turnout is reportedly aided by a production decline by Nigeria, a huge decline by the organization’s largest producer, Saudi Arabia, along with falls in Iran, Libya, and Venezuela.
OPEC saw output slide to 29.88 million b/d last month, a fall of 210,000 b/d from June, despite output gains by six of its members
The survey reported that compliance with production quotas rebounded in July, mainly because Saudi Arabia pumped way below its quota, making up for under compliance by Iraq, the second-largest oil producer in OPEC, and Nigeria.
Saudi Arabia saw its production fall by 150,000 b/d to 9.70 million b/d as exports to almost all its key customers dropped, along with a reduction of the kingdom’s refinery runs. This is the lowest the kingdom has produced for the month of July in almost a decade.
Nigeria remained the biggest outlier in terms of compliance, coming in 240,000 b/d over its quota at 1.93 million b/d in July. But the West African state did manage to cut its output by 40,000 b/d in July, paring the 110,000 b/d increase from May to June.
However, OPEC’s efforts to rebalance the market are moving sluggishly on tepid demand growth amid concerns of a weakening global economy.