According to a Bloomberg survey, OPEC production fell slightly in July to 28.31 million barrels per day, Commerzbank's commodity analyst Carsten Fritsch notes.

Problem of overproduction remains despite the increased targets

"However, the figure for June was revised upward by 320,000 barrels per day due to higher production in Saudi Arabia. In July, Saudi Arabia's Oil production fell by 220,000 to 9.53 million barrels per day, bringing it back in line with the increased target. The eight OPEC countries bound by production targets still produced 535,000 barrels per day more than agreed in July."

"This was mainly due to the United Arab Emirates and Iraq. The deviation in the UAE actually increased, while that in Iraq decreased slightly. The problem of overproduction in some countries therefore remains despite the increased targets. The survey did not include data on Russia and Kazakhstan, as neither country is a member of OPEC, but only of OPEC+."

"Production figures for these two countries will be available next week in the monthly reports of OPEC and the IEA."