Gulf producers restored supply disrupted by the Iran conflict and Strait of Hormuz restrictions, pushing OPEC output to 19.85 million barrels a day, a Reuters survey shows.
MONTREAL (Oil Monster): OPEC crude oil production rose sharply in July as Gulf producers restored supplies disrupted by the Iran conflict and restrictions on shipments through the Strait of Hormuz.
According to a Reuters survey, crude output from OPEC's 11 members increased by 1.17 million barrels per day (mmbbl/d) to 19.85 mmbbl/d during the month. The increase extends the recovery from May, when production fell to its lowest level in decades.
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Iraq recorded the largest production increase, followed by Kuwait. Iran also boosted exports, although shipments slowed after the United States resumed a blockade of Iranian ports in mid-July. Saudi Arabia's output declined slightly, while Libya increased production as its shipments were not disrupted by the conflict.
The July increase came after seven members of the broader OPEC+ alliance agreed to raise production. However, escalating tensions in the Middle East prevented the group from fully delivering the planned increase.
The latest production data exclude the United Arab Emirates, which left OPEC effective May 1.
Despite the strong monthly recovery, OPEC production remained below the levels seen during the 2020 COVID-19 crisis, when collapsing oil demand led producers to implement significant output cuts.
The latest figures indicate that OPEC supply is gradually recovering from the disruptions caused by the conflict and reduced oil flows through the strategically important Strait of Hormuz, a major route for global energy shipments.
OPEC's 11 members increased output by 1.17 million barrels per day to 19.85 million bpd in July, according to a Reuters survey.
Iraq recorded the largest increase, followed by Kuwait. Iran also boosted exports, though shipments slowed after the U.S. resumed blocking Iranian ports in mid-July.
Saudi Arabia's output declined slightly, while Libya increased production because its shipments were not disrupted by the conflict.
The UAE left OPEC effective May 1, so it is no longer included in the group's production figures.
Despite the July rebound, OPEC production remained below the levels seen during the 2020 COVID-19 crisis, when producers implemented significant output cuts.
