Crude oil production by members of the Organisation of Petroleum Exporting Countries hit an eight-year low in July as a further voluntary cut by Saudi Arabia deepened losses caused by United States’ sanctions on Iran and outages elsewhere in the group, a Reuters survey was quoted by Punch Newspaper.
The 14-member OPEC pumped 29.42 million barrels per day in July, the survey showed, down 280,000 bpd from June’s revised figure and the lowest OPEC total since 2011.
The survey suggests Saudi Arabia is sticking to its plan of voluntarily restraining output by more than called for by an OPEC-led supply deal to support the market. OPEC renewed the supply pact in July, shrugging off pressure from US President Donald Trump to pump more.
Despite lower OPEC supplies, crude oil has fallen from a 2019 high above $75 a barrel in April to $65 on Wednesday, weighed down by concern about slowing economic growth.
“Bulging global oil stocks have failed to decline and the market remains well supplied,” said Stephen Brennock of PVM Oil Futures Limited, despite the OPEC-led cuts.