According to news on September 14, according to data from the U.S. Energy Information Administration (EIA) on Friday, both OPEC and non-OPEC partner countries increased their crude oil production in August.
Non-OPEC countries’ daily output increased by 530,000 barrels, while OPEC’s daily output increased by nearly 1 million barrels from the previous month.
Due to the unprecedented travel restrictions and lockdowns caused by the new coronavirus pandemic worldwide, global demand for petroleum liquids dropped significantly in March and April, and global petroleum inventories increased to record levels, with an average increase of 5.9 million barrels in the first quarter /Day, an average increase of 7.2 million barrels/day in the second quarter.
Due to declining demand and sufficient global oil inventories, global crude oil prices fell to historical lows in March and April.
On April 15, OPEC member countries and partner countries (OPEC+) agreed to reduce crude oil production in response to current market conditions. The OPEC+ agreement requires a combined reduction of 9.7 million barrels of crude oil per day in May and June, a combined reduction of 9.6 million barrels per day in July 2020, and a combined reduction of 7.7 million barrels per day in August.
Compared with January, the daily output of OPEC+ crude oil is expected to decrease by 5.9 million barrels in May, 7.9 million barrels in June, 7.1 million barrels in July, and 5.6 million barrels in August.
OPEC crude oil production fell by 5.7 million barrels per day between January and July 2020. According to data from the US Energy Information Administration (EIA), OPEC's daily output in May decreased by 6 million barrels compared with April, the largest drop in history.
In July, the daily output of non-OPEC partner countries decreased by 2.8 million barrels from January 2020 levels.