The Organization of Oil Exporting Countries’ oil production in August dipped to its lowest level since January, according to a Reuters survey released on Monday.
The report highlighted that unrest in Libya, which disrupted the country’s oil supply, compounded the effects of voluntary production cuts by other OPEC members and the broader OPEC+ alliance.
The survey revealed that OPEC’s output for August stood at 26.36 million barrels per day marking a decrease of 340,000 bpd from July, making it the lowest production level since January 2024.
Libya experienced the most significant production decline, with output dropping by 290,000 bpd.
The reduction was linked to a political standoff over control of the central bank, which hampered operations at key oil fields.
The Sharara field was among those affected early in the month, with additional fields facing disruptions towards the end, leading to an average production level of 900,000 bpd, according to the survey.
This supply loss in Libya contributed to rising oil prices and, sources indicated, increased the likelihood that OPEC+ might move forward with a planned production hike in October.
Other notable reductions came from Iraq, which lowered its exports in August as part of its efforts to comply more closely with its OPEC production targets.
Conversely, Iran continued to increase its oil exports over the past few years. Nigeria also reported a slight uptick in production, contributing to higher exports.
The survey noted that “OPEC pumped about 220,000 bpd more than the implied target for the nine members covered by supply cut agreements, with Iraq still accounting for the bulk of the excess.” This overproduction highlights ongoing challenges in achieving full compliance with agreed production cuts among some OPEC members.
