OPEC oil output rises further in July led by Gulf producers, Reuters survey shows

Synopsis

In July, OPEC made a remarkable recovery by increasing oil production to 19.85 million barrels per day. Gulf nations resumed supplies that were previously disrupted, while Iraq reported significant production gains. Iran also managed to increase its exports, though a U.S. blockade eventually hampered shipments. Meanwhile, Libya continued to pump oil without being affected by regional conflicts, marking a recovery from the lowest production levels in May since 2000.

LONDON: OPEC oil output rose further in July, a Reuters survey found, as Gulf members restored supplies that were shut due ‌to the ⁠Iran ⁠war and effective closure of the Strait of Hormuz.

Output by the ​11-member Organization of the Petroleum Exporting Countries rose by 1.17 million barrels ​per day month-on-month to 19.85 million bpd, the survey found.

That extended the recovery from May, which was the ​lowest monthly figure since at least 2000, ⁠according to ‌Reuters surveys, and also well below the ​levels seen ​during the COVID-19 pandemic in 2020 when ⁠demand collapsed.

The figures exclude the United Arab Emirates, ​which quit OPEC on May 1.

Iraq had ​the biggest increase, the survey found, followed by Kuwait. Iran also boosted exports although the resumption of a U.S. blockade on Iranian ports in mid-July slowed shipments again. Saudi supply was slightly lower, the survey found.

Libya, whose ‌shipments are not affected by the U.S.-Israeli war with Iran, also pumped more.

Seven members of ​the OPEC+ ​producer group, ⁠which includes allies such as Russia, had agreed to increase production in July, but the Middle East conflict made that impossible.

The ​Reuters survey is based on flow data from financial group LSEG, information from other companies that track flows, such as Kpler, and information provided by sources at oil companies, OPEC and consultants.