OPEC says oil production increases slightly in August

VIENNA, Austria – Oil production among the 13-member Organization of the Petroleum Exporting Countries (OPEC) increased slightly in August despite Saudi Arabia voluntarily cutting output, the group said in a report Tuesday.

After a drop in July, output rose by 113,000 barrels per day in August to a monthly average of 27.45 million bpd, OPEC said in a monthly report.

The increase by some members was mitigated by cuts made by Saudi Arabia, which in a bid to prop up slumping prices, produced 88,000 fewer barrels per day compared with July.

Oil producers have been grappling with falling prices and high market volatility, reflecting continued fallout from the Russian invasion of Ukraine and China’s faltering economic recovery.

Earlier this month, Saudi Arabia said it would further extend its one-million-barrel output cut for the period of October through December this year.

Analysts have said the kingdom needs oil to be priced at around $80 per barrel to balance its budget.

In August, OPEC’s benchmark price rose by $6.27 to $87.33 per barrel.

In the second quarter, OPEC crude oil production averaged at 28.3 million barrels per day, falling 100,000 barrels per day short of demand, the organization said in its report citing secondary sources.

Projected global oil demand increase in 2023 remained unchanged in the August report at 2.4 million barrels per day.

“In 2024, solid global economic growth, amid continued improvements in China, is expected to further boost oil consumption,” OPEC said.

Next year, global demand for oil will rise by 2.2 million barrels per day to a total global demand of 104.3 million barrels per day, according to the organization. (Agence France-Presse)