Brent crude has surpassed $92 a barrel for the first time this year, influenced by supply reductions from Saudi Arabia and Russia.
In August, the production of the 13-member group saw a modest uptick following a decline in July. OPEC’s monthly report indicated that output grew by 113,000 barrels per day (bpd) to a monthly average of 27.45m bpd.
While some members increased their production, the rise was offset by Saudi Arabia’s decision to cut production. In an effort to stabilize declining prices, Saudi Arabia produced 88,000 barrels less daily compared to July.
Oil suppliers are contending with decreasing prices and significant market fluctuations, which are consequences of ongoing issues like Russia’s Ukraine invasion and China’s uncertain economic revival.
Earlier in the month, Saudi Arabia announced its intention to continue its one-million-barrel reduction in output from October to December of this year.
PVM Oil analyst John Evans believes the oil sector is witnessing a growing probability of oil price inflation, pointing to basic supply and demand factors.
On Tuesday, the Organization of the Petroleum Exporting Countries (OPEC) remained positive in their demand growth predictions for both this year and the next.
According to OPEC’s monthly report, the worldwide oil demand is estimated to increase by 2.25 million bpd in 2024, a slight decrease from the 2.44 million bpd growth in 2023. These projections have remained consistent since the previous month.
