OPEC+ lags behind output plan by 2.74 million bpd: IEA

OPEC+ countries in July 2022 increased oil production by 570,000 barrels per day (bpd), but lag behind the planned production targets by 2.74 million barrels per day, according to the August report of the International Energy Agency (IEA).

The volume of oil output by the members of the alliance increased by 570,000 bpd compared to June from 38.14 mln bpd to 38.71 mln bpd. At the same time, the target level of production by OPEC+ countries for June amounted to 41.45 mln bpd. Thus, the lag behind the plan reached 2.74 mln bpd, reports TASS.

Since May 2020, OPEC+ countries have reduced oil output to stabilize the market, but have begun to restore it once this plan has been implemented. As a result, the countries have adhered to a plan of increasing oil output at a rate of roughly 400,000 bpd per month since August 2021. For July and August 2022, the alliance's countries increased production to 648,000 bpd, equitably dispersing the September quota, amid a forecast summer increase in oil demand due to the global economic recovery following the coronavirus pandemic. However, due to a lack of free capacity, alliance members do not always attain the goal levels. Thus, the OPEC+ deal to reduce oil production in July was one again overfulfilled - the level of agreement execution reached 523% against 314% a month earlier.

According to the IEA, Russia increased oil production (excluding gas condensate) in July by 20,000 bpd compared to June to 9.8 mln bpd. Saudi Arabia increased production by 250,000 bpd to 10.62 mln bpd. In general, OPEC countries fulfilled the OPEC+ deal in July by 359%, and non-OPEC countries - by 800%, the IEA notes.