Global oil supply rose by 530 thousand barrels per day (b/d) to 100.75 million barrels per day (mb/d), according to data from the International Energy Agency (IEA) on Thursday.
OPEC production increased by 50 thousand b/d to 29.74 mb/d, due to the compliance with the OPEC+ agreement, which fell to 116% in August from 130% the previous month, the data showed.
'The decrease is due to Iraq, Nigeria and Russia producing 650 thousand b/d above their allocations,' the report stated.
Following July’s monthly increase of 375 thousand b/d, non-OPEC oil supply rose by a further 480 thousand b/d in August to 65.5 mb/d.
The report explained that the increase in non-OPEC supply was down to the recovery in U.S. oil supply following the passing of Hurricane Barry, the record high output in Brazil, and higher Russian flows.
During August, the U.S. reported the biggest increase with supply up by 520 thousand b/d, month-on-month (m-o-m). Russia and Saudi Arabia delivered combined gains of 240 thousand b/d.
Strong U.S. growth is enabling it to challenge Saudi Arabia and Russia for the rank as the world’s biggest oil exporter, the report said.
'During August, higher Saudi production, record Iraqi flows and increased supply from Nigeria lifted OPEC’s crude oil output by 50 thousand b/d to 29.74 mb/d,' the report stated.
Crude production in Iran fell by a further 40 thousand b/d in August to 2.19 mb/d, hovering at a 30-year low.
Meanwhile, production in Nigeria rose by 40 thousand b/d in August to reach 1.84 mb/d, the highest level since October 2015.
'Supply in Venezuela inched 10 thousand b/d lower in August to 800 thousand b/d. Exports appeared to stabilize during August after a sharp m-o-m fall in July,' the report stated.
On the demand side, the IEA left oil demand growth forecasts unchanged for 2019 and 2020 at 1.1 mb/d and 1.3 mb/d, respectively.
By Gulsen Cagatay
Anadolu Agency
energy@aa.com.tr