OPEC+ countries cut oil output 76,000 bpd more than planned in Aug

MOSCOW. Sept 10 (Interfax) - The OPEC alliance of 12 countries reduced oil production by 197,000 barrels per day in August compared to July to 26.6 million bpd, OPEC said in its monthly report.

Production increased mainly in Nigeria, Congo and Venezuela, but fell in Libya, Iraq and Saudi Arabia.

OPEC+ countries that are OPEC members - according to the agreement, only nine OPEC countries reduce production - raised output in August by 9,000 bpd to 21.48 million bpd and exceeded planned commitments by 336,000 bpd. Iraq exceeded its commitments by almost 320,000 bpd.

OPEC+ countries that are not members of OPEC reduced production by 107,000 bpd in August to 14.068 million bpd. This was 260,000 bpd below the permitted level due to Mexico, Azerbaijan, Sudan and South Sudan. Kazakhstan reduced production by 115,000 bpd but exceeded the required level by 30,000 bpd. Russia reduced production by 30,000 bpd and exceeded the required level by 80,000 bpd.

In addition to the alliance's official quotas, voluntary additional reductions by eight OPEC+ countries are in effect - a reduction of 1.65 million bpd against quotas, announced in April 2023, is in effect until the end of 2025. The 2.2 million bpd cut announced last November is in effect until December 2024, after which it will be phased out gradually on a monthly basis over the course of the year.

Three countries - Iraq, Kazakhstan and Russia - exceeded declared production volumes in H1 2024 and are supposed to compensate gradually by September 2025. However, in August, Iraq and Kazakhstan submitted new schedules taking into account pledges unfulfilled in July - Iraq exceeded its commitments for the 7M by 1.44 million bpd, and Kazakhstan by 700,000 bpd.

Following the latest meeting of eight OPEC+ countries in early September, it was stated that Iraq and Kazakhstan will also compensate for their excess volumes in August. So these countries might have to compensate more, that is, reduce oil production by another 350,000 bpd by September 2025.

Country Actual output, July 2024 Actual output, Aug 2024 Change, Aug/July Required output, Aug 2024 Discrepancy Algeria 908 909 1 908 1 Congo 252 266 14 277 -11 Equatorial Guinea 57 58 1 70,0 -12 Gabon 211 217 6 177 40 Iraq 4278 4228 -50 3910 318 Kuwait 2414 2414 0 2413 1 Nigeria 1391 1448 57 1500 -52 Saudi Arabia 9008 8983 -25 8978 5 UAE 2953 2958 5 2912 46 OPEC-9 21472 21481 9 21145 336 Azerbaijan 488 489 1 551 -62 Bahrain 171 182 11 196 -14 Brunei 80 83 3 83 0 Kazakhstan 1565 1450 -115 1419 31 Malaysia 351 342 -9 401 -59 Mexico 1590 1608 18 1753 -145 Oman 765 770 5 759 11 Russia 9089 9059 -30 8978 81 Sudan 25 26 1 64 -38 South Sudan 53 59 6 124 -65 non-OPEC 14175 14068 -107 14328 -260 OPEC+ 35647 35549 -98 35473 76 Iran 3273 3277 4 Libya 1175 956 -219 Venezuela 863 874 11 OPEC (12 countries) 26784 26588 -196 OPEC+ (all) 40959 40656 -303