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OPEC oil output rises in July, but remains below quotas
OPEC’s total production increased by 1.17 million barrels per day to 19.85 million bpd, with Gulf producers benefiting from reduced shipping disruption after a three-month Strait of Hormuz shutdown.
OPEC’s total oil production rose in July as multiple Gulf producers restored output that had been shut in for around three months due to the closed Strait of Hormuz, according to an OilPrice summary of a Reuters survey using ship-tracking data and input from sources at OPEC, oil companies, and consultants.
The 11-member group produced 19.85 million barrels per day in July, up 1.17 million bpd from June, marking the second consecutive month of increases. The outlet notes that OPEC’s May figure excluded the UAE after the country left the group as of May 1.
Iraq and Kuwait led the July rebound, with Iraq showing the biggest monthly increase, while Iran also raised output after two weeks in July with no U.S. blockade aimed at curtailing Iranian oil exports. Kuwait production is estimated at 1.971 million bpd in July, up from 1.65 million bpd in June and 580,000 bpd in May.
Even with the July gains, production still ran well below OPEC+ quota targets, with the outlet pointing to shipping constraints in the Middle East limiting a full recovery. OilPrice also notes that OPEC+ said earlier this month it would boost production.