Opec production falls as cartel moves to prolong output cuts

Bloomberg

The Organization of Petroleum Exporting Countries’ (Opec’s) output fell for a seventh consecutive month as the group signalled it would keep supplies restrained at least until the end of the year.
Crude production in June dropped to 30 million barrels a day as US sanctions further curtailed Iranian shipments and Saudi Arabia chose to pare back its output.
The supply drop underscores the kingdom’s determination to keep the oil market tight, having just secured an agreement with Russia to extend output cuts for as much as nine months.
June output was 130,000 barrels a day lower than May, bringing the total reduction since the group agreed a fresh round of output cuts last year to about 2.5 million barrels a day. Despite that significant curtailment — a combination of voluntary cuts and involuntary supply disruptions — crude has been languishing at about $65 a barrel in London due to fears that global demand is weakening.
Saudi production fell by as much as 100,000 barrels a day to 9.73 million, according to a Bloomberg survey of officials, analysts and ship-tracking data. The kingdom has been the most enthusiastic participant in the Organization of Petroleum Exporting Countries’ deal with non-members including Russia, a group known as Opec+. On average, it cut output by a quantity 721,000 barrels a day in the first half compared with the October baseline — more than double its pledged reduction.