A survey by Reuters has found that oil output from the Organisation of Petroleum Exporting Countries (OPEC) hit an eight-year low in July.
OPEC pumped 29.42mn barrels per day (bpd) of crude oil, according to Reuters, down 280,000 bpd from June. OPEC and its allies, known collectively as OPEC+, made an agreement in December to cut output by 1.2mbpd. The agreement was renewed into 2020 at the beginning of July 2019. OPEC in July achieved 163% compliance to the agreed upon cuts.
The biggest supply drop came from Saudi Arabia, furthering losses felt by the US sanctions against Iran, as well as crises in Libya and Venezuela. Reuters reported Saudi production at 9.65mbpd in July, compared to its target of 10.31mbpd as per the OPEC agreement.