Daily Management Review

OPEC pushes up production in July


According to the organization's August report, OPEC members again produced below the levels allowed under the OPEC+ agreement. Thus, they satisfied the agreement by 412% even though OPEC oil output increased by 162,000 bpd in July to 28.84 million bpd from June.

"Secondary sources indicate that in July 2022, the average daily oil production of the 13 OPEC nations increased by 162,000 bpd to 28.84 million bpd. While oil output declined in Venezuela, Libya, and Angola, it increased mostly in Saudi Arabia, Kuwait, and the United Arab Emirates," the report reads.

The group reduced output by 1.678 million barrels per day (bpd) in comparison to October 2018, which served as the baseline for the OPEC+ oil production limiting agreement. This is 1.271 million bpd more than what the alliance's 10 member nations have committed. As a result, OPEC exceeded the agreement in July by 412%. The arrangement was 229% complete in June.

Due to a decline in oil demand brought on by the COVID-19 pandemic, OPEC+ decreased oil output by 9.7 million bpd in May 2020. The agreement's provisions were subsequently changed a number of times.

source: opec.org