OPEC Posts First 2019 Oil Output Rise despite Saudi Cuts

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OPEC oil output has risen in August for the first month this year as higher supply from Iraq and Nigeria outweighed restraint by top exporter Saudi Arabia and losses caused by U.S. sanctions on Iran. a Reuters survey found.

The 14-member Organization of the Petroleum Exporting Countries has pumped 29.61 million barrels per day (bpd) this month. the survey showed. up 80.000 bpd from July’s revised figure which was the lowest OPEC total since 2014.

The survey indicates Saudi Arabia is not deviating from its plan of restraining output by more than called for by an OPEC-led supply deal to support the market. Despite calls this year from U.S. President Donald Trump on OPEC to raise output. the producers renewed the supply pact in July.

OPEC’s supply curbs should eventually start to support the price of crude LCOc1. which has fallen from a 2019 high above $75 a barrel in April to $61 on Friday on concern about slowing oil demand and economic growth. analysts at Commerzbank said.

“Even the moderate demand growth that can be expected is likely – given the considerable production discipline shown by OPEC – to result in an ongoing tightening of supply and to support rising prices.“ Commerzbank analyst Eugen Weinberg said.

OPEC. Russia and other non-members. known as OPEC+. agreed in December to reduce supply by 1.2 million bpd from Jan. 1 this year. OPEC’s share of the cut is 800.000 bpd. to be delivered by 11 members and exempting Iran. Libya and Venezuela.

In August. the 11 OPEC members bound by the agreement. which now runs until March 2020. achieved 136% of pledged cuts. down from 150% in July. the survey found. Two of the three exempt producers pumped less oil.

The biggest supply boost of 80.000 bpd came from Nigeria. Africa’s largest exporter. which is seeking a higher OPEC quota and in August continued to produce above its target by the largest margin.

The second-largest rise of 60.000 bpd came from Iraq. which boosted exports from both its northern and southern outlets according to the survey.