Crude oil production by the Organization of Petroleum Exporting Countries (OPEC) reached its peak in August, as increased output from Saudi Arabia and other Gulf members offset production losses in Nigeria and Libya.

Output from Saudi Arabia has possibly reached hit fresh record, as the kingdom meets its periodic higher domestic demand and focuses on upholding market share.

According to Reuters’ survey, other Middle Easter producers, apart from Iran, also increased their production, increasing the group’s output to 33.50 million barrels per day from the 33.46 million bpd recorded in July.

United Arab Emirates continue to boost output, reaching 3.0 million bpd in August for the first time while Iraq and Kuwait pumped a little more than in July.

The cartel’s inability to arrive at an agreement on output freeze in December 2015 caused the prices to drop to $27 per barrel in January 2016 before it finally reached its peak of $52 per barrel in June

The price have been fluctuating recently before settling at $48 a barrel from $42 at the start of August, driven by speculations of an output freeze this September.

On the other hand, countries like Nigeria recorded the biggest drop due to attacks on oil facilities by militants.

Nigeria’s largest grade, the Qua Iboe stream, has been under force majeure thus decreasing exports.

Meanwhile, output dropped further in Libya and in Venezuela, which was hit by an economic crisis.

The oversupply in the market started since OPEC in 2014 let go of its role of setting output to bolster prices as Saudi Arabia, Iraq and Iran pumped more.

Production also increased as a result of Indonesia’s comeback in 2015 as well as Gabon in July as members of OPEC.

Supply from OPEC in August’s was at 32.54 million bpd, the highest since in 1997. This however, those not include Gabon and Indonesia.

Supply from Iran, was steady that same month as output nears the pre-sanctions rate. The country is currently looking for investment to boost supply further.

Saudi Arabia’s Energy Minister, Khalid al-Falih, last week, said that August production had remained around July’s level, without giving exact figures, THIS DAY reports.

Anita Fatunji