OPEC's August output increase warned oil producers not to let markets rebalance

September 11, the Organization of Petroleum Exporting Countries (OPEC) warned oil producers not to produce too much crude oil against the backdrop of weakening global economic growth.

OPEC said in its monthly oil market report that global oil demand is expected to grow by about 1 million barrels per day this year. Compared with last month's report, the latest estimate is 80,000 barrels a day. Meanwhile, driven by Saudi Arabia and Nigeria, oil production within the group rose in August, while the surge in oil production by rivals is expected to continue until the end of the year. According to secondary sources of OPEC, OPEC's daily production increased by 136,000 barrels in August, and that of Saudi Arabia and Nigeria increased by about 200,000 barrels in total. OPEC also lowered its demand growth forecast for 2020 by 60,000 barrels a day.

Since OPEC will meet in Abu Dhabi on Thursday, the group's compliance with the cut-off agreement has become the focus of attention. In recent days, ministers have been promising to strengthen compliance with the agreement, Nigeria has said it will try to comply soon, and Iraq has said it is committed to reducing production, but it is difficult to comply. In addition to its own production level, OPEC also faces increasingly fragile demand prospects and the problem of surging output in countries outside the group.

"This highlights the shared responsibility of all producers to support the stability of the oil market in order to avoid unnecessary volatility and market rebalancing," the group said.