Only 30,000 BPD more was produced by quota-bound oil producers in August, falling 3.4 million BPD short of their total objective.
The Organisation of Petroleum Exporting Countries (OPEC) alliance was supposed to have finished unwinding the 9.7 million bpd production cutbacks it committed to in April 2020 in response to the Covid-19 outbreak last month, but several countries have found it difficult to resume supply.
Several nations are producing much below target because to years of underinvestment, sanctions against Russia, disruptions, and sabotage in other countries. According to calculations, the 3.4 million BPD shortfall in August in comparison to the limit was larger on a monthly basis.
OPEC member countries with quotas raised supply by only 200,000 bpd, leaving them 1.27 million bpd below their target. Non-OPEC members of the coalition underperformed to a greater extent, as output fell in Russia and Kazakhstan.
Among OPEC producers, West African countries were responsible for most of the shortfall. Disruption continues to affect loadings of Forcados, Bonny Light and Brass River in Nigeria.
Abuja had sought to implement security measures and meet its quota by the end of August but came up to over 700,000 b/d short. A lack of investment and declining output at mature fields has also put a cap on Angolan production.
The decline in west African supply was more than offset by a sharp rebound from Libya, which brought back online fields and terminals following a period of sustained disruption.
Libya, which is exempt from targets, raised its output above 1 million bpd for the first time since March, leaving it 450,000 bpd higher on the month. This helped push total OPEC output to its highest in over two years at 29.77 million bpd, up by 670,000 bpd in July.
Mideast Gulf producers contributed to the increase. Saudi Arabia’s production edged closer to 11 million bpd, a level it has exceeded only twice since 2002, according to the Joint Organisation Data Initiative (JODI) data.
