The Organisation of Petroleum Exporting Countries (OPEC) experienced its lowest oil output since January 2024, according to a Reuters survey released on Monday.
The survey revealed that OPEC’s production fell to 26.36 million barrels per day (bpd) in August, a decrease of 340,000 bpd from July.
The decline in output was largely attributed to unrest in Libya, which disrupted oil supplies and contributed to the overall drop. Libyan production, significantly impacted by political tensions over the central bank, fell by 290,000 bpd, bringing output to an average of 900,000 bpd for the month. This disruption, alongside voluntary supply cuts by OPEC and the broader OPEC+ alliance, has played a role in boosting global oil prices.
Other contributing factors include reduced exports from Iraq, which has been working to align its output with OPEC targets, and the ongoing increase in exports from Iran. Nigeria, however, saw a slight increase in its oil output, which helped elevate its exports.
The survey also noted that OPEC’s production exceeded the implied target for nine member countries covered by supply cut agreements by about 220,000 bpd, with Iraq being the primary contributor to this excess.
The findings suggest that the disruption in Libyan supply and ongoing cuts might influence OPEC+ decisions, potentially supporting a planned output increase starting in October.
