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OPEC production fell 840K bpd in July – survey

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WTI crude oil is up another $1.07 today as it builds towards a sixth-consecutive week of gains. It’s trading at $81.61 and near the highs of the day after Reuters’ survey of OPEC production showed a drop of 860K bpd.

The bulk of that is the 500kbpd Saudi voluntary cut, which has been extended through August (but not yet Sept) and the Saudi cut isn’t a surprise. The bigger twist is from Nigeria, where output fell 120k bpd due to a potential leak at a Shell export terminal and a brief stoppage due to a protest.

In total, Angola and Nigeria are both producing far below quotas with the UAE and Saudis producing slightly above.

This survey doesn’t include Russia but indications are that they have lowered exports in July as promised, or are headed in that direction.

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