OPEC oil output has risen by about 1 million barrels per day (bpd) in August, a Reuters survey found, as the group and allies eased record oil supply curbs as the global economy and demand began to recover from the coronavirus pandemic.
The 13-member Organization of the Petroleum Exporting Countries pumped 24.27 million bpd on average in August, the survey found, up 950,000 bpd from July’s figure and a further boost from the three-decade low reached in June.
An easing of lockdowns and lower supply from OPEC, Russia and allies, known as OPEC+, have helped oil LCOc1 climb above $46 a barrel from April’s 21-year low of below $16. Still, concern of a coronavirus second wave is weighing on price gains and focusing minds in OPEC.
“Now we are on better ground, but a full recovery is not there yet,” said an OPEC delegate. “We must continue to monitor the market and coronavirus situation very carefully.”
OPEC+ from May 1 made a record cut of 9.7 million bpd, or 10% of global output, after the virus destroyed a third of world demand. From Aug. 1, the cut tapered to 7.7 million bpd until December, of which OPEC’s share is 4.868 million bpd.
In August, OPEC countries bound by the deal delivered 99% of the pledged reduction, the survey found. Compliance in July was revised up to 95%.