OPEC production declines in August; Saudi output edges lower

Crude oil production from the Organization of Petroleum Exporting Countries (OPEC) decreased by 79,000 barrels per day (bpd) in August to 32.76 million barrels per day (mbd), as production fell in Libya, Gabon, Venezuela and Iraq.

Crude oil output in Nigeria, meanwhile, increased by 138,300 bpd, OPEC said in its latest monthly report. 

According to data from secondary sources, Saudi Arabia’s output was down 10,300 bpd to 10.022 mbd, staying below the country’s agreed production limit of 10.058 million.

Saudi Arabia’s direct communication put its production at 9.951 million bpd.

OPEC revised its estimates for global demand in 2017, increasing the outlook by 50,000 bpd to 1.42 mbd. “The adjustment mainly reflects better-than-expected data from OECD region for Q2 2017, particularly OECD Americas and Europe, as well as China,” the report said.

In 2018, OPEC expects world oil demand to grow by 1.35 million bpd, an increase of 70,000 bpd from the previous report.

On the supply side, the cartel maintained its forecast on non-OPEC production, estimating a growth of 780,000 bpd in 2017 “due to offsetting revisions in Kazakhstan and US supply,” the report said.

In 2018, non-OPEC oil supply is forecast to grow by 1 million bpd, the report said.

OPEC natural gas liquids (NGLs) and non-conventional liquids production is seen averaging 6.49 million bpd in 2018, representing an increase of 180,000 bpd, the agency said.

Write to Nadeshda Zareen at nadeshda.zareen@argaamplus.com