Connection

popular articles

India: Petronet LNG adopts Novolen technology to boost production
Panama Launches Energy Auction for Renewables
France grants two exploration permits for natural hydrogen in Nouvelle-Aquitaine
Philippines recover 96% of fuel oil after tanker sinks
Chinese manufacturers dominate the global wind market in 2024

Lower OPEC production due to Saudi cuts

OPEC oil production is declining due to drastic cuts by Saudi Arabia to support prices, while global demand is expected to increase in 2023 and 2024.
  • [favorite_button]

Please share:

In July, oil production by OPEC members fell by 836,000 barrels per day. Saudi Arabia has implemented cuts to stabilize prices, according to OPEC’s monthly report.

Drop in OPEC oil production, led by Saudi Arabia in July

In July, oil production by the 13-member Opec, which counts Saudi Arabia as a heavyweight, “fell by 836,000 barrels month-on-month to an average of 27.31 million barrels per day”, Opec said in its monthly report, citing indirect sources.

This drop was mainly due to Saudi Arabia, whose production fell by an estimated 968,000 barrels a day in July, a massive decline that was only slightly offset by production increases in countries such as Angola and Iraq.

Joint Opep+ initiatives: Massive production cuts to stabilize world prices

Nine members of the OPEC+ alliance (comprising 13 member countries and 9 allied states), including Riyadh and Moscow, began voluntary production cuts in May, totaling 1.6 million barrels/day (mb/d). This initiative is designed to keep prices high. Riyadh opted for a further production cut of one million barrels/day in July, extended twice until September. Moscow has pledged to reduce its exports by 500,000 barrels/day in August, then by 300,000 barrels/day in September.

Expected growth in global oil demand: OPEC’s outlook for 2023 and beyond

For 2023, OPEC is maintaining its forecast for global demand growth at 102 mb/d, with an increase of 2.4 million barrels per day compared to 2022. This assessment is based on OPEC’s monthly revisions. In Q3, global oil demand should reach 101.96 mb/day, and 103.21 mb/d in Q4.

“A persistent increase in demand for fuel for transport and industry, supported by a recovery in activity in China and other non-OECD regions, should boost demand in 2023,” Opep estimates in its report.

For 2024, the organization also predicts that “solid global economic growth, accompanied by continued improvement in China, should boost oil consumption”.

OPEC forecasts an increase in demand of 2.2 mb/d, which would bring world demand for black gold to an average of 104.3 mb/d.

Register free of charge for uninterrupted access.

Publicite

Latest news

South Africa’s Ishwati Emoyeni wind project reaches financial close for 140MW
Konexa, Norfund and CFM invest $3.6mn in solar energy in Nigeria
Eurus Energy begins construction of Hajang 5 wind farm at 1,080 metres altitude
Ocean Winds launches final phase with first turbine installed at EMYN
BOOM Power’s 400 MW solar project receives final approval in the UK

Recently published in

Esso restarts refining units in Port-Jérôme after 750,000 hours of maintenance

Esso’s Gravenchon site restarts operations following a planned shutdown involving 1,000 workers and over 750,000 labour hours.
Russia targets stable return to 10.8 million barrels per day
Deputy Prime Minister Alexander Novak says Russian oil production could reach a sustained level of 10.8 million barrels per day, supported by rising global demand and internal fiscal adjustments.
en_1140290948540-6
Russia targets stable return to 10.8 million barrels per day
Deputy Prime Minister Alexander Novak says Russian oil production could reach a sustained level of 10.8 million barrels per day, supported by rising global demand and internal fiscal adjustments.
en_1140290948540-6
Oil rises after trade truce between the United States and China
Oil prices climbed following a joint decision by Washington and Beijing to temporarily suspend tariffs, easing pressure on global demand.
en_1140290953540-6
Oil rises after trade truce between the United States and China
Oil prices climbed following a joint decision by Washington and Beijing to temporarily suspend tariffs, easing pressure on global demand.
en_1140290953540-6
Shell delays two strategic wells at Perdido offshore field in the United States
Shell announced a delay in bringing two new wells online at the Perdido offshore field, temporarily lowering production targets in the Gulf of Mexico.
en_1140290961540-3
Shell delays two strategic wells at Perdido offshore field in the United States
Shell announced a delay in bringing two new wells online at the Perdido offshore field, temporarily lowering production targets in the Gulf of Mexico.
en_1140290961540-3

Aramco’s net profit drops 4.6% in Q1 2025

Lower sales revenues and rising operational costs impacted Aramco’s results, while the company remains central to Saudi Arabia’s economic strategy.
Oil prices rebound following trade deal between London and Washington
Oil prices climbed on Friday, supported by the signing of a trade agreement between the United States and the United Kingdom, reviving expectations of easing global tensions.
en_1140290953540-5
Oil prices rebound following trade deal between London and Washington
Oil prices climbed on Friday, supported by the signing of a trade agreement between the United States and the United Kingdom, reviving expectations of easing global tensions.
en_1140290953540-5
Kern County reopens oil permitting despite historic decline in California
California approved only three new drilling permits in Q1 2025, but Kern County and two CO₂ pipeline bills may reverse that trend.
en_1140290952540-4
Kern County reopens oil permitting despite historic decline in California
California approved only three new drilling permits in Q1 2025, but Kern County and two CO₂ pipeline bills may reverse that trend.
en_1140290952540-4
US shale oil drilling costs to rise 4.5% in 2025
US oil operators will face moderate drilling cost increases in 2025, driven by tariffs, despite price drops in several key service segments.
en_1140290943540-15
US shale oil drilling costs to rise 4.5% in 2025
US oil operators will face moderate drilling cost increases in 2025, driven by tariffs, despite price drops in several key service segments.
en_1140290943540-15

Craig Steinke appointed CEO of BluEnergies following James Deckelman’s departure

BluEnergies Ltd. has announced the immediate appointment of Craig Steinke as Chief Executive Officer, succeeding James Deckelman, who is stepping down for personal reasons.
US-China tariff war disrupts China’s petrochemical market
The increase in tariffs between the United States and China is radically reshaping China's petrochemical supply flows, threatening to raise costs and intensify supply challenges in an already strained strategic sector.
en_1140290943540-4
US-China tariff war disrupts China’s petrochemical market
The increase in tariffs between the United States and China is radically reshaping China's petrochemical supply flows, threatening to raise costs and intensify supply challenges in an already strained strategic sector.
en_1140290943540-4
Washington targets Chinese buyers of Iranian crude with new sanctions
The United States imposes sanctions on several Chinese entities involved in purchasing and transporting Iranian oil, disrupting a petroleum supply chain worth several hundred million dollars.
en_1140290953540-4
Washington targets Chinese buyers of Iranian crude with new sanctions
The United States imposes sanctions on several Chinese entities involved in purchasing and transporting Iranian oil, disrupting a petroleum supply chain worth several hundred million dollars.
en_1140290953540-4
Oil rises over 3% following trade agreement between Washington and London
Brent and WTI prices surged after the announcement of a trade deal between the United States and the United Kingdom, raising expectations of a rebound in global crude demand.
en_1140290955540-4
Oil rises over 3% following trade agreement between Washington and London
Brent and WTI prices surged after the announcement of a trade deal between the United States and the United Kingdom, raising expectations of a rebound in global crude demand.
en_1140290955540-4

US crude oil inventories fall by 2 million barrels

US commercial crude oil reserves dropped more than expected in early May, supported by increased refinery activity, according to the latest data from the Energy Information Administration.
Opec+ weighs on crude market with production increase in June
Oil prices are trending downward under the combined pressure of increased output from Opec+ members and the potential for a nuclear deal between Iran and the United States.
en_1140290943540-3
Opec+ weighs on crude market with production increase in June
Oil prices are trending downward under the combined pressure of increased output from Opec+ members and the potential for a nuclear deal between Iran and the United States.
en_1140290943540-3
Venezuela to take over Chevron oil fields before May 27
The Venezuelan government confirmed it will continue operating Chevron’s oil fields after the US-imposed withdrawal of the American company.
en_1140290943540-2
Venezuela to take over Chevron oil fields before May 27
The Venezuelan government confirmed it will continue operating Chevron’s oil fields after the US-imposed withdrawal of the American company.
en_1140290943540-2
Shell considers BP takeover as group valuation declines
BP rises on the London Stock Exchange amid acquisition rumours by Shell, which may wait for a further drop in oil prices before taking action.
en_1140290945540-2
Shell considers BP takeover as group valuation declines
BP rises on the London Stock Exchange amid acquisition rumours by Shell, which may wait for a further drop in oil prices before taking action.
en_1140290945540-2

Ecuador awards Sinopec a $105mn oil drilling contract in the Amazon

Petroecuador signed an agreement with Sinopec to drill new wells in the northeastern Amazon, aiming to increase output by 12,000 barrels per day.
Oil rebounds over 3% driven by gasoline demand
Crude prices gained momentum after a drop triggered by OPEC+, supported by strong gasoline demand in the United States ahead of the summer season.
en_1140290955540-2
Oil rebounds over 3% driven by gasoline demand
Crude prices gained momentum after a drop triggered by OPEC+, supported by strong gasoline demand in the United States ahead of the summer season.
en_1140290955540-2
Subsea7 secures major contract with Petrobras for Búzios 11 field
Petrobras has awarded Subsea7 a large-scale contract for the development of the Búzios 11 field, located in the pre-salt Santos basin offshore Brazil.
en_1140290967540-2
Subsea7 secures major contract with Petrobras for Búzios 11 field
Petrobras has awarded Subsea7 a large-scale contract for the development of the Búzios 11 field, located in the pre-salt Santos basin offshore Brazil.
en_1140290967540-2
Equinor sells its 60% stake in the Peregrino field for $3.5 billion
Norway’s Equinor sells its majority stake in Brazil’s offshore Peregrino field to PRIO for $3.5 billion, shifting focus to Bacalhau and the Raia gas project.
en_1140290965540-2
Equinor sells its 60% stake in the Peregrino field for $3.5 billion
Norway’s Equinor sells its majority stake in Brazil’s offshore Peregrino field to PRIO for $3.5 billion, shifting focus to Bacalhau and the Raia gas project.
en_1140290965540-2

Opec+ ramps up production despite crude falling below $62

Eight Opec+ members will raise output by 411,000 barrels per day in June, boosting global supply amid falling prices and ongoing trade tensions.
US crude oil stocks fall by 2.7 million barrels in one week
Commercial crude inventories in the United States saw an unexpected drop, significantly exceeding analysts' forecasts, according to data from the Energy Information Administration.
en_1140290958540-16
US crude oil stocks fall by 2.7 million barrels in one week
Commercial crude inventories in the United States saw an unexpected drop, significantly exceeding analysts' forecasts, according to data from the Energy Information Administration.
en_1140290958540-16
TotalEnergies posts 33% drop in net profit in first quarter
TotalEnergies saw its net profit fall to $3.9bn in the first quarter, impacted by lower oil prices, despite an increase in its hydrocarbon and electricity production.
en_1140290948540-18
TotalEnergies posts 33% drop in net profit in first quarter
TotalEnergies saw its net profit fall to $3.9bn in the first quarter, impacted by lower oil prices, despite an increase in its hydrocarbon and electricity production.
en_1140290948540-18
Repsol posts 62% drop in net profit in first quarter
Repsol’s quarterly performance plunged due to the combined impact of falling crude prices, shrinking refining margins and trade tensions between the United States and its partners.
en_1140290955540-17
Repsol posts 62% drop in net profit in first quarter
Repsol’s quarterly performance plunged due to the combined impact of falling crude prices, shrinking refining margins and trade tensions between the United States and its partners.
en_1140290955540-17

Advertising

LEGAL

FOSSILS

POLICY

RENEWABLE

PLUS

VERVANT

Welcome

Your subscription

Included in this subscription:

COMMUNICATE ON ENERGYNEWS