The Organization of the Petroleum Exporting Countries (OPEC) has released its monthly report, which has provided support for the upside in crude oil prices. In the report, OPEC maintained its forecast for global oil demand growth in 2023 at 2.4 million barrels per day (bpd). For 2024, the forecast predicts economic growth of 2.6% (unchanged) and a global demand increase of 2.2 million bpd.

According to the report, the overall OPEC crude oil output rose by 113,000 barrels per day in August, reaching 27.45 million barrels per day. The increase was primarily driven by higher production in Iran and Nigeria. The report also mentioned that, based on secondary sources, Saudi Arabia's crude oil output decreased by 88,000 barrels in August to 8.97 million bpd.

They raised the 2023 non-OPEC supply increase forecast by 100,000 barrels per day to 1.6 million bpd.

Market reaction

Crude oil prices rose further after the report. The WTI barrel is up by 0.89% trading at $88.20, its highest level since November.