The Organisation of Petroleum Exporting Countries (OPEC) saw its oil production fall to its lowest level since January, according to a Reuters survey released on Monday. The survey highlighted that unrest in Libya, which disrupted the country’s oil supply, contributed significantly to the decline, alongside ongoing voluntary production cuts by other OPEC members and the broader OPEC+ alliance.
In August, OPEC produced 26.36 million barrels per day (bpd), a decrease of 340,000 bpd from July, marking the lowest output level since January 2024, the survey revealed.
The reduction in Libyan exports and production, driven by a standoff between political factions over control of the central bank, was a major factor behind the supply decrease. This disruption helped push oil prices higher and, according to sources, increased the likelihood that OPEC+ will move forward with a planned output hike starting in October. Libya’s output decline of 290,000 bpd was the largest among OPEC members. Production was impacted early in the month at the Sharara field and later at additional fields, bringing Libya’s average output down to 900,000 bpd.
Other declines in output were reported in Iraq, which reduced its exports in August as part of efforts to improve compliance with its OPEC production target. However, Iran has continued to boost its oil exports over the past few years.
Nigeria was one of the few countries to record a slight increase in production, leading to a small boost in exports.
The survey also noted that OPEC pumped approximately 220,000 bpd more than the target set for the nine members participating in supply cut agreements, with Iraq accounting for most of the excess production.