OREANDA-NEWSCountries included in the Organization of Petroleum Exporting Countries (OPEC) in August increased oil production by 136 thousand barrels per day compared with production in July to 29.74 million barrels per day. This follows from the September report of OPEC. Oil production in August increased mainly due to Saudi Arabia (by 118 thousand bpd compared to July), Nigeria (by 86 thousand bpd), Iraq (by 43 thousand bpd) and the United Arab Emirates (by 11 thousand bpd). At the same time, Venezuela, Iran, Libya, Kuwait and Algeria reduced oil production last month.

At the same time, 11 OPEC countries participating in the Vienna agreement to reduce production in August reduced production by 971 thousand barrels per day to the base level adopted in the agreement. Thus, in August their total daily production amounted to 25.779 million barrels compared to 26.75 million barrels in October 2018. Under the terms of the agreement, they were supposed to reduce production by 812 thousand barrels per day. Consequently, in August, obligations were fulfilled by 120%.

Most production in August compared with July was reduced by Venezuela (by 43 thousand bpd), Iran (by 24 thousand bpd), Libya (by 21 thousand bpd), which don't participate in the Vienna Agreement. OPEC + countries (24 oil exporting countries, including Russia) have been coordinating production management since 2017. At a meeting in July, they extended the agreement to reduce oil production by 1.2 million barrels per day to the level of October 2018, of which 812 thousand barrels per day fall to OPEC countries. Now the agreement is valid until the end of March 2020. According to which countries will continue to reduce production at a similar or slower pace.