Opec production increased by 670,000 b/d in August to a three-month high of 23.94mn b/d as the Opec+ production cuts eased into their second phase. The production increase was softened by the “compensation mechanism” whereby underperforming participants cut deeper to make up for earlier overproduction.
The production gains come at a time of growing market unease, as earlier global demand forecasts are being downgraded by slower-than-hoped for economic recoveries from the coronavirus pandemic, and fears over a second wave in the northern-hemisphere winter (MEES, 21 August). (CONTINUED - 994 WORDS)
