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OPEC's oil production increased in August, according to a survey

A survey released on Thursday found that OPEC oil production increased in August following an OPEC+ production agreement. This was primarily due to the United Arab Emirates' and Saudi Arabia's higher production.

According to the survey, the Organization of the Petroleum Exporting Countries (OPEC) pumped 27,84 million barrels of oil per day in July, an increase of 360,000 barrels per days over the revised total for the month of July. The United Arab Emirates, and Saudi Arabia, were the countries that saw the biggest increases.

OPEC+ - which includes OPEC, its allies, including Russia - is accelerating the plan to undo its latest layer of production cuts. Some members must also make additional cuts to compensate earlier overproduction. This should, theoretically, limit the impact of price hikes.

According to an agreement between eight OPEC+ member countries covering August output, five of the OPEC-members - Algerian, Iraqi, Kuwaiti, Saudi Arabian and UAE - had to increase output by 416,000 bpd, before the effects of compensation cuts totaling 178,000 bpd.

According to the survey the actual increase of the five was 310,00 bpd.

Many outside sources place the output of Iraq and the UAE higher than what the countries themselves claim.

Other estimates, like those from the International Energy Agency (IEA), say that they pump significantly more.

The survey aims at tracking supply on the market. It is based upon data provided by LSEG (a financial group), information from companies that track flow, such as Kpler and information from sources within oil companies, OPEC, and consultants. (Additional reporting and editing by Louise Heavens, Ahmad Ghaddar)

(source: Reuters)