Global oil supply falls as OPEC+ production declines

Global oil supply fell by 1.6 million barrels per day in August, reaching 100.1 million barrels per day, according to the International Energy Agency (IEA). This decline was driven largely by a 1.5 million barrel per day drop in OPEC+ production. Notably, Saudi Arabian production fell by 2.3 million barrels per day to 6 million barrels per day, its lowest level in 30 years.

Supply disruptions in the Persian Gulf and the Strait of Hormuz, alongside infrastructure attacks, have negatively impacted production. While OPEC+ output decreased, non-OPEC+ production rose by approximately 240,000 barrels per day to 61.32 million barrels per day, led by increases in the United States, Canada, Brazil, Guyana, and the United Arab Emirates.

The IEA has also lowered its global oil demand forecasts due to escalating conflicts in the Middle East and the ongoing war in Ukraine. These geopolitical tensions, including threats to maritime routes like the Bab el Mandeb strait, continue to disrupt oil flows and contribute to rising fuel prices, particularly for diesel.