In August, OPEC increased oil production by 760 thousand barrels per day compared to July – up to 24.05 million bpd, according to the organization's monthly report.
In general, the execution of the OPEC + transaction by the OPEC countries amounted to 103% in August, but if we take into account the necessary compensation from Iraq – only 95%.
In August, new quotas to reduce oil production by OPEC + countries began to operate – they can slightly increase production. In addition, in August, a compensation mechanism is in place for countries that must reduce production in excess of the established quotas, since they did not previously reduce enough.
Official information on such compensation was provided only for Iraq – the second largest producer in OPEC, which is the worst performing deal. So, Iraq promised in August to further reduce production by 400 thousand b / d to its quota, that is, to reduce it by 1.25 million b / d to the level of October 2018. Thus, according to Interfax's calculations, taking into account the promised compensation, Iraq fulfilled the agreements only by 80%, excluding – by 118%.
According to reports, the estimate for the UAE's production in July was raised by almost 100 thousand bpd – from 2.43 million bpd to 2.525 million bpd.