OPEC oil production in August reached the highest since April 2020

OPEC oil production in August increased to the highest since the beginning of the coronavirus pandemic in 2020. In particular, production in Libya has recovered after the unrest, and the Gulf countries have increased production volumes within the framework of OPEC+ agreements.

The production of «black gold» by OPEC countries in August increased by 690 thousand barrels per day compared to July and amounted to 29.58 million barrels per day.

As you know, the OPEC+ alliance increased production monthly, leveling production restrictions imposed during the Covid-19 pandemic. In total, OPEC agreed to increase production by 648 thousand barrels per day in August. Despite this, oil production in many countries of the Union has been lagging behind quotas for several months.

The fact is that many producers faced a shortage of reserve production capacity due to lack of investment, and production by 10 OPEC countries in August increased by 300 thousand barrels per day, lagging behind the agreed levels (413 thousand barrels).

On Monday, September 5, an OPEC+ meeting will be held, and it is expected that the reduction in production, which Saudi Arabia spoke about last week, can be implemented if Iranian oil returns to the world market after the restoration of the nuclear deal.