OPEC+ misses August target by record 3.58 million bpd - report

Quantum Commodity Intelligence - Production from the OPEC+ alliance fell short of its target level in August by a record 3.58 million bpd, according to a report published by Argus Media, one of the producer group's official data suppliers.

The coalition's 10 participating core OPEC members accounted for 1.399 million bpd of the August shortfall, while their non-OPEC allies underproduced by 2.185 million bpd, according to OPEC data.

This significantly widens the gap between the group's pledged and delivered production, which stood at 2.892 million bpd in July.

Argus is one of seven data providers which OPEC+ uses to calculate compliance rates, along with the EIA, S&P Global Platts, IHS Markit, Rystad Energy, Wood Mackenzie and Energy Intelligence.

The surveys are collated by OPEC and OPEC+ technical committees and presented to Ministers ahead of monthly meetings.

The Argus survey found OPEC+ output was 3.41 million bpd under the group's August target, with deal-bound OPEC members and their non-OPEC counterparts missing their quotas by 1.27 million bpd and 2.14 million bpd, respectively.

Underproduction from Russia, constrained by western sanctions, but not exempted from its OPEC+ commitments, amounted to 1.252 million bpd in August according to OPEC+, and 1.26 million bpd per Argus estimates.

Nigeria fell 700,000 bpd short of its August quota as a consequence of ongoing infrastructural hurdles and security concerns.

The OPEC+ alliance has agreed a 100,000 bpd target increase this month, which will be reversed in October. Officials have repeatedly highlighted dwindling capacity within the group and the need for additional investment globally in the oil and gas sector.

The OPEC+ Joint Technical Committee (JTC) that studies market conditions feeding into the group's policy will next meet on 4 October, ahead of the 5 October ministerial meeting to determine November production policy, noted the report.