Global oil output falls in August while OPEC predicts increased demand

Oil production amongst OPEC member states fell in August for the first time since March as the cartel continues to lead cutbacks which have been in place since the start of the year.

OPEC members pumped 32.76 million barrels per day (bpd) in August, down by about 79,000 bpd on the previous month, according to figures from independent sources which monitor output levels.

Among its key members, top exporter Saudi Arabia dipped slightly to just above 10 million bpd, while Iraq and the United Arab Emirates cut their production in August. A sustained economic crisis continues to drain output in Venezuela.

Production in Nigeria and Libya has increased in recent months, with both exempt from the agreed output cuts, however output fell last month in the latter as sporadic protests continue to disrupt operations at the giant Sharara oil field.

Russia also continues to comply with the OPEC-led cuts, which may be extended beyond March as Saudi Arabia held discussions about extending the deal.

OPEC also slightly raised its forecast for global oil demand in 2017/18, predicting the world will consume 96.77 million bpd this year and 98.12 million bpd in 2018.

“Global economic growth momentum has gained traction lately and has become more balanced, with all major economies now showing positive growth this year, a trend that is forecast to continue into 2018,” said OPEC.