OPEC+ crude oil production declined by 300,000 barrels per day (b/d) in August, falling to 40.73 million b/d, according to a survey by S&P Global Commodity Insights released on September 9. The drop was primarily attributed to maintenance work in Kazakhstan and production outages in Libya.
Despite the overall production decrease, countries within the OPEC+ alliance with quotas exceeded their targets by 327,000 b/d in August, though this marked a reduction from the 437,000 b/d of overproduction seen in July.
Overproduction Challenges
Overproduction remains a persistent challenge for the group as it attempts to stabilize falling oil prices, which have been impacted by uncertain global demand and rising production levels from non-OPEC+ countries.
In August, OPEC’s production fell by 120,000 b/d to 26.77 million b/d, while output from its non-OPEC allies decreased by 180,000 b/d, reaching 13.96 million b/d, the survey revealed.
Libya and Kazakhstan Lead Declines
Libya led the decline in OPEC output, as political unrest led to shutdowns that reduced the country’s production by 160,000 b/d in August, bringing it down to 990,000 b/d.
Among non-OPEC producers, Kazakhstan experienced the largest drop in output, with maintenance at the Tengiz oil field cutting production by 120,000 b/d to 1.45 million b/d.
Both Kazakhstan and Iraq, another major OPEC producer, have been producing above their quotas in 2024. The two countries have pledged to make up for their overproduction by the end of September 2025. Iraq’s output remained steady in August at 4.33 million b/d, well above its 3.93 million b/d quota.
Russian and Saudi Output
Russia, the largest non-OPEC producer in the alliance, reduced its production by 50,000 b/d in August, bringing its output to 9.05 million b/d, still above its quota of 8.98 million b/d. Saudi Arabia, which shares the same quota, maintained production levels at 8.99 million b/d.
Impact on Oil Prices and OPEC+ Response
The persistent overproduction within OPEC+ has contributed to a decline in oil prices over the summer. On September 6, Platts assessed Dated Brent crude at $73.03 per barrel, down from a peak of over $93 per barrel in April 2024.
In response to the weakening prices, OPEC+ delayed plans to gradually ease 2.2 million b/d of voluntary production cuts. Originally set to begin in October, the rollback has been pushed to December, according to a statement from the group on September 5. The cuts involved eight members of the alliance, including Saudi Arabia, Russia, Kuwait, and Iraq.
Despite this, prices continued to drop, with Dated Brent assessed at $75.23 per barrel on September 4.
Upcoming Meetings
The Joint Ministerial Monitoring Committee, responsible for overseeing the OPEC+ agreement, is scheduled to meet on October 2. A full ministerial meeting for the group will take place on December 1 in Vienna. OPEC+ has the option to hold extraordinary meetings if needed to address changes in market conditions.
The data for the Platts survey is gathered from various sources, including oil industry officials, traders, analysts, and proprietary data on shipping, satellite tracking, and inventory analysis.