In July, OPEC oil production spiked by about 1 million barrels per day. As it turned out, the Gulf Countries, led by Saudi Arabia, continued to increase the oil output despite the agreement. Apart from that, non-OPEC countries that previously agreed to cut oil production did not meet requirements set by the OPEC deal.

As a result, the oil output was around 23.32 million barrels per day. The figure exceeded the level stipulated by the agreement signed during the OPEC meeting in June by 970,000 barrels.

However, some experts believe that oil production growth is likely to be short-lived due to the current situation in the world. The coronavirus pandemic is still raging on and the number of new cases increases every day. Thus, demand for oil remains extremely low dragging down oil production.

Nevertheless, an increase in oil output recorded in July was the highest in the past few months.

Saudi Arabia pumped about 8.4 million barrels per day in July, which indicates a rise of 850,000 barrels per day.

The prices of crude oil are still unstable and remain at a fairly low level. Besides, such auctions of Saudi Arabia may lead to the conflict with countries that do not benefit from the oil cut but have to limit the production due to the agreement.