OPEC+ oil production surges in July as Saudi Arabia boosts output

Oil production by the OPEC+ group, comprising the Organization of the Petroleum Exporting Countries (OPEC) and several non-OPEC producers, rose by approximately 1.78 million barrels per day in July from the previous month to 40.75 million barrels per day, AzerNEWS informs, citing the International Energy Agency (IEA).

According to the report, Saudi Arabia’s oil production increased by about 900,000 barrels per day to 8.24 million barrels per day, while Russia’s output rose by around 100,000 barrels per day to 8.76 million barrels per day. Supply from countries outside the OPEC+ group increased by approximately 590,000 barrels per day to 60.75 million barrels per day.

The report said OPEC+ production increased during the period despite disruptions to Kazakhstan’s oil production and exports caused by attacks in the Black Sea. The increase in output from non-OPEC+ producers was linked to the restoration of Qatar’s oil supplies following a brief easing of tensions between the United States and Iran. However, the breakdown of the memorandum of understanding between Iran and the United States, renewed tensions toward the end of the month, and Houthi-linked attacks targeting Saudi tankers and energy infrastructure are threatening Gulf producers’ efforts to restore production.

Assuming that talks on restoring commercial flows through the Strait of Hormuz make progress, global oil supply is expected to average 102 million barrels per day this year, representing a decline of 4.3 million barrels per day from last year. Despite the increase in global oil supply, overall output remains 6.3 million barrels per day below the level recorded during the same period last year, as the shutdown of 8.3 million barrels per day of production in the Gulf region continues.

The renewed escalation of conflicts in July and early August, together with disruptions to maritime transportation, has hindered the recovery of production. As a result, the forecast for global oil supply in the third quarter has been revised downward by 1.7 million barrels per day compared with the previous month’s report.