OPEC abandons "" Whatever strategy is needed, production increases

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OPEC production increased in August thanks to Iraq and Nigeria, according to a Reuters poll on Friday.

OPEC production in August was estimated at 29.61 million barrels per day, or 80,000 barrels per day compared to the July production level.

The increase in production is surprising, given that Iran and Venezuela are producing less not by choice and continue to face uphill battles when it comes to maintaining their oil production. Saudi Arabia also respected the agreement on the reduction of production as expected, but increased production by August slightly compared to July. Overall, the group continues to respect production quotas.

This means that the compliance of OPEC for August is now estimated at 136%, not thanks to Iraq and Nigeria, which have increased production by 80,000 barrels per day and 60,000 barrels per day, respectively. And although Saudi Arabia is still too compliant, it increased production in August to produce 9.63 million barrels a day.

While Iraq, Nigeria and Saudi Arabia increased production in August, Iran's production declined further, recording a loss of 50,000 barrels a day for the month. Last week, US Secretary of State Mike Pompeo said he had successfully removed 2.7 million barrels of oil a day from the oil market since he sanctioned the country for the first time.

Iranian oil and condensate exports fell to 120,000 barrels a day in July, Reuters said last week. Iran's production for July was 2.21 million barrels per day. This compared to an average daily production rate of 3.55 million barrels for the whole of 2018.

Oil prices fell sharply on Friday and news that OPEC production increased this month could push prices down further. At 15:26 EST, the WTI traded 3.14% lower on the day to $ 54.93 a barrel, while Brent crude traded at $ 58.88, down 2.66% on the day .

By Julianne Geiger for OilScore

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