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yesterday

OPEC+ Plans September Production Increase on Forecasted Q3 Demand Surge

Split compliance in June has highlighted the need for another output rise to forestall supply tightening.

A view of the logo of the Organization of the Petroleum Exporting Countries (OPEC) outside their headquarters in Vienna, Austria, November 30, 2023. REUTERS/Leonhard Foeger/File Photo
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Overview

  • OPEC projects “very strong” third-quarter oil demand growth and signals a further sanctioned output hike in September to address a tightening market.
  • OPEC+ production rose by 349,000 barrels per day in June, falling short of the 411,000 bpd monthly increase targeted under its unwinding plan.
  • Saudi Arabia met its June quota by using a supply-to-market metric that reduced its counted output and diverted excess barrels into storage.
  • Iraq kept its production increase modest in June while Kazakhstan overshot its quota by about 347,000 bpd.
  • Independent firms S&P Global Commodity Insights and Argus Media shifted to the supply-to-market metric at Saudi Arabia’s request, lowering their secondary-source production estimates.