OPEC Production Slumps To 5-Year Low


Thursday, August 08, 2019   /12:06PM / By CSL Research / Header Image Credit: oilandgasmiddleeast.com

According to data released by the S&P Global Platts Survey, OPEC, world biggest oil cartel, pumped its fewest barrels of crude oil in over 5 years (Apr 2014 – 29.70mb/d). OPEC oil output slumped by 210,000 b/d to 29.88mb/d in the month of July from 30.09mb/d in June, on the back of continued production cuts from the cartel’s leading producer, Saudi Arabia. Saudi’s oil production in July dipped 150,000b/d to 9.70mb/d maintaining a 5-month streak of keeping oil production below 10.00mb/d. The cartel’s output decline was further supported by falls in Iran, Nigeria, Venezuela and Libya.

The decline in oil production comes in a summer month when oil production is usually higher. However, with sentiments concerning oil price weak, Saudi’s oil minister has restated the kingdom’s desire to maintain production below 10.0mb/d. The decline in Iran remains linked to US sanctions which saw its oil production dip 50,000b/d in July to 2.30mb/d, a level last seen in 1988. Meanwhile, Venezuela saw output dip by 30,000b/d to 730,000b/d in July on the back of sustained blackouts in oil installations across the country while Nigeria saw output shrink by 40,000b/d.

Proshare Nigeria Pvt. Ltd.

In terms of compliance with the 1.20mb/d extended cut deal agreed in July, OPEC compliance rose to 117% in July on the back of overcompliance from Saudi Arabia whose desire to keep the oil market balanced remains relentless. Angola, Kuwait, Algeria and the UAE were the other members whose production levels remained below their agreed quota. Despite the cuts in production, oil price has continued to slide, declining 11.0% since the last OPEC meeting.

Proshare Nigeria Pvt. Ltd.

Related News

1.       Oil Struggles As Markets Rocked By Trade War – OIR 060819

2.      5.61bn Litres of PMS Imported into Nigeria in Q2 2019 - NBS

3.      Sahara Group Lauds Investment Opportunities in Angola’s Downstream Sector

4.      Oil Prices Rebound After A Difficult Day - OIR 020819

5.      Oil Markets On Edge Ahead Of Big Week - OIR 300719

6.      Oil Markets Struggle For Direction- OIR 260719

7.      Oil Markets Ignore The Tanker War- OIR 230719

8.     Oil Capped By Shaky Demand Outlook - OIR 190719

9.      Oil Falls Back As Iran Risk Factor Fades - OIR 160719

10.  Average Prices of PMS, AGO, HHK and Cooking Gas – June 2019

Proshare Nigeria Pvt. Ltd.

Proshare Nigeria Pvt. Ltd.

Proshare Nigeria Pvt. Ltd.
Related News