OPEC output falls in August to lowest since January

OPEC oil output fell in August to its lowest since January as disruptions to Libyan supplies compounded the impact of ongoing voluntary supply cuts by other members of the group and the wider OPEC+ alliance, a Reuters survey showed on Monday.

The survey showed the Organization of the Petroleum Exporting Countries (OPEC) pumped 26.36 million barrels per day (bpd) last month, down 340,000 bpd from July.

According to the Reuters survey, that was the lowest total since January 2024.

Oil prices steady as Libya’s exports halt, OPEC+ supply expected to rise

Lower exports and output in Libya amid a dispute between political factions over control of the central bank have helped lift oil prices, and sources say that has increased the likelihood that OPEC+ will go ahead with a planned output increase from October.

Libya accounted for the biggest supply loss last month, at 290,000 bpd, the survey found. The survey showed production was disrupted at the Sharara field early in the month and at more fields towards the end of the month, reducing output to an average of 900,000 barrels per day.

Some oil flow data, such as that provided by Kpler, showed little impact on Libyan exports in August, although sources in the survey estimated the impact of the production cuts was greater on exports.

Libya is exempt from OPEC+ output cuts. Other declines came from Iraq, which the survey found cut exports in August to improve compliance with its OPEC target, and Iran, which is also exempt.

Iran has boosted its exports in recent years despite continued U.S. sanctions and is still pumping near its highest levels since 2018.