Opec supply set for huge fall in August

Opec oil supply is set to fall by 419,000 barrels per day this month, a company that tracks the organisation’s shipments forecast yesterday, reflecting plans for lower exports by Saudi Arabia and reductions by other producers.

The 14-member group has agreed to cut output by about 1.2m barrels a day until March 2018 to cut inventories and support prices.

Compliance with the deal has been high so far but Opec production hit a 2017 peak in July, in part on increased output from Libya and Nigeria, which were exempted from the pact due to production-sapping unrest.