Opec Oil Production Surged in July

According to a Report by Gulf Times on July 31, Opec oil production rose by more than 1 million b/d in July as the major Gulf producers ended voluntary additional supply restrictions on the basis of an OPEC-led agreement and other members made limited progress in complying.

The 13-member Organisation of the Petroleum Exporting Countries pumped an average of 23.32m b/d in June, up 970,000 b/d from the revised June figure and the lowest since 1991, the survey found.

Opec and its Allies agreed to record production cuts in April as the coronavirus crisis hit demand.

While fears of a second round of higher oil prices are holding back prices, they have climbed above $40 a barrel from a 21-year low below $16 in April.

Stephen PVM of PVM, an oil broker, says: "It's hard to think of anything that could be done.

Stephen Brennock, chief executive, said: "As long as the outbreak persists, there will be a shortage of upside potential."

Opec, Russia and other producers agreed to cut output by 9.7 million barrels a day, or 10% of global output, from May 1.

For most countries, the 10 members will derive Opec's share of 6.084 million b/d from the October 2018 level.

In July, the survey found, they met their commitment to reduce emissions by 5.743 million barrels a day, equivalent to 94 per cent compliance.