OPEC’s oil output rose further in August after an OPEC+ agreement to raise production, a Reuters survey found on Thursday, mainly reflecting higher production by the United Arab Emirates and Saudi Arabia.

The Organization of the Petroleum Exporting Countries pumped 27.84 million barrels per day last month, up 360,000 bpd from July’s revised total, the survey showed, with the United Arab Emirates and Saudi Arabia making the largest increases.

OPEC+, which comprises OPEC and its allies including Russia, is accelerating its plan to unwind its most recent layer of output cuts. At the same time, some members are required to make extra cuts to compensate for earlier overproduction, in theory limiting the impact of the hikes.

Under an agreement by eight OPEC+ members covering August output, the five of them that are OPEC members – Algeria, Iraq, Kuwait, Saudi Arabia and the UAE – were to raise output by 416,000 bpd before the effect of compensation cuts totalling 178,000 bpd for Iraq, Kuwait and the UAE.

According to the survey, the actual increase by the five was 310,000 bpd.

There is a wide range of estimates of output in Iraq and the UAE with many outside sources putting the countries’ output higher than the countries themselves.

While the Reuters survey and data provided by OPEC’s secondary sources show they are pumping close to the quotas, other estimates, such as those of the International Energy Agency, say they are pumping significantly more.

The Reuters survey aims to track supply to the market and is based on flows data from financial group LSEG, information from other companies that track flows such as Kpler, and information provided by sources at oil companies, OPEC and consultants.
Source: Reuters