Global crude supply fell by 0.4 percent in August

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The OPEC's global crude supply dropped by 0.4 percent in August, according to the group’s monthly report, which reduced extractions for the first time since March and assured that the rise in prices shows that the market is overcoming the oil glut, EFE reported.

In the report, the Organization of Petroleum Exporting Countries informed that its fourteen members extracted an average of 32.75 million barrels per day (mbd) last month. This figure, obtained from secondary sources and not from the countries’ official data, evidences a decline by 3 percent from July.

The OPEC maintained record levels since March, hitting monthly highs despite the production cut agreement reached between the organization and several other majors in December 2016, and later renovated in May, to reduce the oversupply that had weighed down prices for two years.

Iran and Libya, two of the countries exempted from the deal, reduced their output in August. The drop was especially relevant in the African nation, with 10 percent less from July.

According to the cartel, not only did OPEC curb production in August, global crude output decreased by 0.4 percent to 96.75 mbd.

The organization remarked that crude prices improved last month “in the face of signs of a rebalance in the market and a more significant reduction in U.S. stocks.”

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