Opec production increased by 290,000 b/d in August, the smallest monthly increment in four months. The 13-member group’s production averaged 26.99mn b/d in August, and has now increased for seven consecutive months. The gains are set to keep on coming as Opec+ continues to taper its cuts, but there are growing signs that some producers are already struggling to keep up.
The ten Opec producers subject to production cuts were entitled to produce 23.29mn b/d in August, but their combined output last month was 470,000 b/d short of this at 22.82mn b/d. Many of the smaller Opec producers have been unable to prevent production capacity from declining amid investment shortfalls, and as production cuts ease, the divergence between members could become increasingly pronounced (MEES, 18 June). (CONTINUED - 981 WORDS)
