According to a survey by S&P Global Commodity Insights, OPEC-13’s crude oil production reached a near two-year low in July 2023. This was primarily due to a major voluntary production cut by Saudi Arabia, offsetting disruptions in Kazakhstan and Nigeria. The survey reported that OPEC’s 13 members pumped 27.34 million barrels per day (bpd), while Russia and other allies added 13.06 million bpd, resulting in a total of 40.40 million bpd – the lowest since August 2021.
Saudi Arabia’s production fell to 9.05 million bpd, its lowest since June 2021, while Nigeria’s production dropped by 100,000 bpd due to an outage at the Forcados terminal. Despite these cuts, Iranian production reached its highest level since December 2018, and Venezuela’s crude production was at its highest since February 2019.
The survey also suggested that the United States may be relaxing sanctions enforcement on Iran and Venezuela, possibly as a response to its pressure on Russia following the Ukraine invasion.
It’s important to note that quotas include voluntary extra cuts by certain OPEC members and allies, with Iran, Libya, and Venezuela exempt from quotas.
As of the report’s time, Brent crude price was at $86.34 per barrel.
Opinion: The decline in OPEC-13’s crude oil production to a near two-year low can have significant implications for global oil markets. The voluntary production cuts by major producers like Saudi Arabia indicate their efforts to balance supply and demand and support oil prices.
Saudi Arabia’s decision to extend its crude oil production cut until the end of September 2023 reflects its commitment to manage the global oil market’s dynamics. However, disruptions in other member countries like Nigeria due to facility outages can contribute to supply volatility.