Global liquids production in August increased by 1.32 million barrels per day (bpd) to an average of 89.88 million bpd, the Organization of Petroleum Exporting Countries (OPEC) said in its report on Monday.
In August, OPEC crude oil production rose by 760,000 bpd month-over-month to average 24.05 million bpd, according to secondary sources quoting from OPEC's Monthly Oil Market Report.
Non-OPEC liquids production in August, including OPEC non-gas liquids (NGLs) and non-conventional liquids, is estimated to have increased by 600,000 bpd from the previous month to average 65.83 million bpd.
As a result, the share of OPEC crude out of total global production increased by 26.8% in August relative to the previous month.
Saudi Arabia was the country among OPEC members that raised its monthly crude oil production the most in August with an increase of 475,000 bpd to climb above 8.8 million bpd.
Among other OPEC members, the United Arab Emirates (UAE), Kuwait and Algeria also saw the largest increases in crude oil production levels in August.
While the UAE saw its crude output jump by 180,000 bpd to approximately 2.7 million bpd last month, Kuwait's crude production rose by 127,000 bpd to almost 2.3 million bpd, and Algeria's output increased by 47,000 bpd to more than 855,000 bpd.
- Oil demand to rise in 2021
Global oil demand in 2021 is expected to increase by 6.62 million bpd, or 7.34%, next year to average 96.86 million bpd in 2021.
"Given the ongoing global economic challenges, the oil sector recovery, supported by the efforts of OPEC and non-OPEC oil-producing nations participating in the Declaration of Cooperatio to stabilize the market, is vital in fuelling global economic developments," OPEC said in its report.
"The impact of COVID-19 related developments on an already fragile global economic conditions remain challenging and will require coordinated global policy action from all market participants, including the efforts undertaken by OPEC and non-OPEC oil producers," it added.
Demand for OPEC crude in 2021 is revised down to average 28.2 million bpd in 2021 -- around 5.5 million bpd higher than the average of 2020.
The COVID-19 pandemic, which began in the first quarter of 2020, has quickly spread around the world to cause a recession in the global economy as well as an unprecedented shock in global oil demand, leading to a large supply glut on the oil market.
By Sibel Morrow