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OPEC August output is up to least expensive because January on Libya, survey finds

OPEC oil output fell in August to its least expensive considering that January, a Reuters survey found on Monday, as unrest that interrupted Libyan supply added to the effect of ongoing voluntary supply cuts by other members and the broader OPEC+ alliance.

The Company of the Petroleum Exporting Countries pumped 26.36 million barrels per day last month, down 340,000 bpd from July, the survey found. This was the lowest total considering that January 2024, according to Reuters studies. << PRODN-TOTAL >

A drop in Libyan exports and production in the middle of a standoff between political factions over control of the reserve bank has assisted increase oil costs and, sources say, increased the possibility that OPEC+ will continue with a scheduled output hike from October.

Libya offered the largest supply loss last month of 290,000 bpd, the survey found. Output was disrupted at the Sharara field early in the month and at more fields towards the end, cutting output to approximately 900,000 bpd, the survey found.

Some flows data, such as that of Kpler, showed little effect on Libyan exports in August, although sources in the survey approximated the production effect to be more significant.

Libya is exempt from OPEC+ arrangements to limit production. Other decreases came from Iraq, which reduced exports in August according to the survey and is seeking to boost compliance with its OPEC target, and from Iran which is likewise exempt.

Iran has been boosting exports in the last couple of years despite U.S. sanctions remaining in location and is still pumping close to the greatest levels considering that 2018.

Among nations posting higher output, there was a little increase in Nigeria which improved exports, the survey found.

OPEC pumped about 220,000 bpd more than the indicated target for the 9 members covered by supply cut agreements, with Iraq still accounting for the bulk of the excess, the survey found.

The Reuters study intends to track supply to the market and is based on shipping data provided by external sources, LSEG circulations data, info from business that track circulations such as Kpler and Petro-Logistics, and info supplied by sources at oil business, OPEC and consultants.

(source: Reuters)