OPEC crude oil supply fell in August to the lowest since November 2009 as reduced supplies from Nigeria, the UAE and Iraq offset increased output in Angola.

According to the survey of oil companies, OPEC officials and analysts, supply from the 11 members of the Organization of the Petroleum Exporting Countries with output targets all except Iraq averaged 26.83 million barrels per day last month down from 26.95 million barrels per day in July. The decline mainly reflects output disruption in Nigeria and Iraq rather than an OPEC effort to improve adherence to output targets. Analysts say higher compliance is unlikely without a slide in oil prices.

Mr Mike Wittner global head of oil research at Societe Generale said that "OPEC would defend the floor of its informal USD 70 per barrels to USD 80 per barrel range with cuts in actual output. But in order for that to happen, prices would need to move significantly below USD 70 and look like they are going to stay there for a while."

OPEC has left its output ceiling unchanged for more than a year since announcing a record supply curb of 4.2 million barrels per day in December 2008 to combat lower demand and prices.

Supply from the OPEC 11 was 1.99 million barrels per day higher in August than their target of 24.84 million barrels per day the survey found meaning the group achieved 2.21 million barrels per day of the supply curbs. That left compliance at 53% up 3 percentage points from July. It peaked at 81% in April and March 2009. Total OPEC supply including Iraq was down 140,000 barrels per day to 29.09 million barrels per day the lowest since November 2009 based on Reuters surveys.

(Sourced from Reuters)