OPEC+ output at 2-year low on Saudi cuts - survey

Quantum Commodity Intelligence – OPEC+ crude production slumped almost 1 million bpd to a two-year low in July as the group continued to rein in production, largely led by Saudi Arabia, according to the latest production survey published by S&P Global Commodity Insights.

Saudi Arabia's output last month dropped to 9.05 million bpd, the lowest since June 2021 and down 940,000 bpd versus June, but slightly missing the 1 million bpd target.

The figure was slightly under the Bloomberg survey, which calculated the OPEC kingpin pumped an average of 9.15 million bpd in July.

S&P found OPEC's 13 core members pumped 27.34 million bpd, while OPEC+ allies contributed 13.06 million bpd for a total of 40.40 million bpd - the lowest since August 2021.

Russian production was seen flat on the month at 9.42 million bpd, ahead of Moscow's pledge to cut exports by 500,000 bpd in August and 300,000 bpd in September.

The survey also noted disruptions in Kazakhstan and Nigeria more than offset gains in Iran and Iraq, which included Iranian production recorded at 2.76 million bpd, its highest level since December 2018.

Meanwhile, the survey said Venezuelan output was the highest level since February 2019 at 810,000 bpd, indicating signs of a relaxation in US sanctions enforcement.

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