OPEC Keeps Oil Output Steady As Market Wobbles

OPEC kept oil production broadly steady last month while cautiously monitoring the impact of its latest cutbacks on global markets.

OPEC reiterated that it could “pause or reverse” the scheduled supply increases depending on market conditions. I Photo: alex.ch Flickr

The cartel produced an average of 26.99 million barrels per day (bpd) in July, about 60,000 barrels per day less than in June, according to a Bloomberg survey, Grant Smith, Julian Lee, and Bill Lehane reported for Bloomberg News.

Venezuela and Iran drove the decline as demand faltered in their key customer, China.

The cartel and its allies held a monitoring meeting this week as they prepare to gradually revive production—halted since 2022 in a bid to shore up prices—from the fourth quarter.

While the committee, led by Saudi Arabia and Russia, chose to stick with the plan, it reiterated that it could “pause or reverse” the scheduled supply increases depending on market conditions.

Crude futures have faltered here and there despite escalating geopolitical tensions in the Middle East, leaving international benchmark Brent below $80 a barrel.

While the recent price decline may offer relief to consumers and central banks still grappling with rampant inflation, it potentially spells trouble for OPEC+ nations.

Saudi Arabia has suffered a four-quarter growth slump, forcing Riyadh to cut investment in flagship economic projects championed by Crown Prince Mohammed bin Salman, Verity Ratcliffe and Lucia Kassai also reported for Bloomberg News.