Opec output fell to its lowest level in more than five years in July despite Iraq posting record high production. The group’s output last month averaged 29.78mn b/d, down 140,000 b/d from the previous month, and the lowest figure since April 2014. Nevertheless, oil prices plummeted this week, with Brent well below $60/B.

Concerns over the US-China trade war precipitating a global economic slowdown that will dampen oil demand growth are escalating. With Opec stuck with lower production...