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OPEC Pumped Far Above Ceiling In July

According to Reuters, OPEC increased it production by 90,000 b/d in July. I calculate that is far above its 32.5 million ceiling.

To get a comparable figure to the ceiling set at end-November, two adjustments must be made. Production from Indonesia must be added (740,000 b/d) because its output was included in the ceiling, notwithstanding it was dropping out. And production from Equatorial Guinea (140,000 b/d) must be deducted because it was not an OPEC member and its output was not included.

Using 32.62 for June before those adjustments, OPEC’s production was above 33.31 million with those adjustments for July. That is 810,000 b/d above the 32.5 ceiling, about two-thirds more.

OPEC’s monitoring committee is going meet on August 7 and 8 with some OPEC Member Countries as well as some non-OPEC participating countries “to identify ways and means of raising levels of conformity.” 

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