OPEC oil production rose in July, with an increase of 100,000 barrels per day (bpd) from June, reaching a total of 26.70 million bpd.
The rise was primarily driven by a rebound in Saudi Arabian supply and smaller increases in production from other members, according to a Reuters survey based on shipping data and industry sources.
Despite ongoing voluntary supply cuts by OPEC+, the group has managed to boost output. These cuts, initially implemented to support the market amid weak demand growth, high interest rates, and increasing U.S. production, are set to continue until the end of 2025.
However, a recent OPEC+ ministerial meeting maintained the current output policy, including plans to start easing some cuts from October, with the possibility of pausing or reversing this decision if necessary.
Saudi Arabia, the largest producer within OPEC, led the increase with a supply boost of 70,000 bpd, bringing its production to 9 million bpd in July, close to the country’s target. This increase followed lower-than-expected exports in June.
Nigeria experienced the most significant decline, with a reduction of 30,000 bpd due to lower exports compared to the previous month.
Meanwhile, Libya, Iran, and Iraq saw slight increases in production.
Notably, Iran’s output reached 3.22 million bpd, the highest since 2018, as the country continued to increase exports despite ongoing U.S. sanctions.
The survey revealed that OPEC’s production was about 240,000 bpd above the target set for the nine members under supply cut agreements, with Iraq contributing the most to this excess output.
