The Organization of the Petroleum Exporting Countries (OPEC) raised his level of crude oil production at 763,000 barrels per day during the month of August, according to the monthly report prepared by the cartel on the world oil market and published this Monday.
Specifically, the 13 countries that make up OPEC produced 24.045 million barrels per day in the eighth month of the year. As in other months, the wide Most of the increase came from Saudi Arabia, the ‘de facto’ leader of the cartel and its largest producer, which increased pumping by 475,000 barrels a day to 8,892 million.
He second largest increase corresponded to the United Arab Emirates, which increased its extractive volume to 2,705 million barrels per day, 180,000 more. On its side, Kuwait also increased its production level by 127,000 barrels, to 2,288 million. Iraq, on the other hand, stood out as the country that reduced its production the most, to 3.652 million barrels, 100,000 less than a year ago.
Venezuela’s production remained practically intact at 340,000 barrels per day, which is why it remains at its worst levels since there are records.
Unlike in recent months, the cartel has not specified in its report the level of production of the other ten allied countries that participate in the pact to cut production.
July was the last month in which countries cut their production by 9.7 million barrels a day. Since August, and until the end of the year, the cut has become 7.7 million per day. While between January 2021 and April 2022, the adjustment will be reduced to 5.8 million.
The members of OPEC and the other countries participating in the production control agreement have repeatedly assured that the increased production would not have an effect on prices due to higher domestic consumption in producing countries and the increase in demand from third countries as a result of the rebound in economic activity.
The cartel has revised the lowers your estimate regarding oil demand globally in 2020 up to 90.2 million barrels per day. This figure implies that during this year, the demand for ‘black gold’ will be reduced by more than nine million barrels per day.
Preliminary data for July, the latest available, suggest that the OECD’s oil ‘stock’ fell by 4.5 million barrels compared to the previous month, so that reserves totaled 3,231 million barrels. This figure is 260.6 million above the average of the last five years and 273.7 million above the figure registered a year earlier. The level of reserves indicates that the OECD has oil available for 72.2 days, which represents 9.9 days more than the average for the last five years.
In August, the average price of OPEC crude rose at $ 1.77 compared to July, standing at $ 45.19 per barrel, thus recovering the ground lost due to the recovery of the “fundamentals” of the physical delivery market.