A survey conducted by Reuters revealed that the oil production of the Organization of the Petroleum Exporting Countries (OPEC) increased in July due to a rebound in Saudi supplies and slight increases elsewhere.
The increase limited the impact of the ongoing voluntary supply cuts by other OPEC members and the broader OPEC+ alliance.
The survey, which was based on navigational data and information from oil industry sources, showed that OPEC pumped 26.70 million barrels per day last month, an increase of 100,000 barrels per day compared to June.
The increase comes despite OPEC+—including OPEC and its allies like Russia—maintaining most production cuts until the end of 2025 to support the market amid weak demand growth, rising interest rates, and increased U.S. production.
An OPEC+ ministers’ meeting yesterday, Thursday, kept the oil production policy unchanged, including a plan to start rolling back a portion of the production cuts beginning in October. The ministers confirmed that this increase could be temporarily halted or reversed if necessary.
Saudi Arabia
The survey concluded that Saudi Arabia provided the largest boost in supplies last month, with 70,000 barrels per day. The exports recovered compared to June when they were below expectations. Production reached nine million barrels per day in July, which is close to the Kingdom’s target.
Nigeria
The survey revealed that Nigeria recorded the largest decrease of 30,000 barrels per day, with a monthly drop in exports. Libya and Iran, which are not required to cut production, along with Iraq, saw slight increases. The survey concluded that Iran’s production reached 3.22 million barrels per day, the highest since 2018, according to surveys conducted by Reuters and reported by Sky News Arabia.
Iran
Iran has increased its exports recently despite American sanctions, while Iraq’s production and monthly exports have also risen, according to oil flow data and a tanker tracking source.
The survey revealed that OPEC has surpassed its supply reduction target for the nine countries by about 240,000 barrels per day, with Iraq contributing the most to the excess production.
Reuters survey tracks market supplies using shipping data from external sources, flow data from the London Exchanges Group, and information from companies like Petro-Logistics and Kepler.
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