Oil production in August was higher than that in July as OPEC continued to ease production cuts, according to a Reuters survey.

According to the survey, crude oil production increased by 950000 barrels a day in August to 2427 million barrels a day. Despite Iraq’s commitment to cut production by another 400000 barrels a day in August to make up for its failure to comply with the oepc + cut quota, the increase appears to be continuing. Nigeria has also pledged to cut production further to make up for overcapacity since May.

When OPEC + extended the record 9.7 million barrels per day cut for one month to the end of July, the alliance agreed that all countries in the treaty should comply with their quotas 100 per cent, while those that did not comply should compensate for non-compliance by exceeding the cut in July, August and September.

Since August, OPEC + has reduced its production to 7.7 million B / D, of which 13 OPEC member states need to cut 4.868 million B / D in total, excluding compensatory production cuts in Iraq and Nigeria.

Oil demand may be improving, helping OPEC stick to its quotas, but even OPEC is not particularly optimistic about oil demand this year. In its latest monthly oil market report, the group said it expects daily oil demand to fall by 9.1 million barrels this year, up 100000 barrels from July’s forecast. OPEC also estimates that the global economy could fall as much as 4% this year, compared with 3.7% in July.

Since OPEC production hit its lowest level since 1991 in June, OPEC production has rebounded by 2 million B / D, including a 1 million B / d cut initiated by Saudi Arabia to accelerate the oil price rebound by tightening supply, according to Reuters survey data. Saudi Arabia, by far the largest producer of OPEC, produced 9 million barrels a day in August, 600000 more than in July.