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OPEC+ oil production experienced its largest increase in nearly a year in July, with Iraq and Kazakhstan raising their outputs despite deeper cut commitments, while Russia remained significantly above its quota.
According to a survey by Platts OPEC+ from S&P Global Commodity Insights on August 10, the group’s total production rose by 160,000 barrels per day (bpd) from June, reaching 41.03 million bpd.
July marked the first month of compensation plans for three countries that had exceeded their quotas in the first half of 2024. Iraq committed to an additional cut of 70,000 bpd in July, while Kazakhstan pledged to reduce by 18,000 bpd. Russia’s compensation plan does not include additional cuts until October 2024.
The survey revealed that Iraq produced 4.33 million bpd in July, approximately 400,000 bpd above its quota. This contributed to a 130,000 bpd increase in OPEC’s production, totaling 26.89 million bpd.
OPEC+ has vowed to adhere to its strategy of significantly reducing production until the third quarter, with plans to gradually reintroduce barrels to the market. However, overproduction and falling oil prices pose risks to these plans.
The next meeting of the Joint Ministerial Monitoring Committee, co-chaired by Saudi Arabia and Russia, is scheduled for October 2. A full ministerial meeting is set for December 1.
