OPEC’s oil output rose for the second consecutive month in June, driven by increased supply from Nigeria and Iran, according to a Reuters survey. This increase offset the impact of voluntary supply cuts by other members and the broader OPEC+ alliance.
The Organisation of the Petroleum Exporting Countries (OPEC) pumped 26.70 million barrels per day (bpd) last month, marking a 70,000 bpd rise from May. The survey’s findings are based on shipping data and information from industry sources.
This boost in output comes despite OPEC+’s decision last month to extend most of its output cuts until the end of 2025. These cuts aim to support the market amidst sluggish demand growth, high interest rates, and rising US production.
Nigeria led the increase with an additional 50,000 bpd, while Iran and Algeria also saw smaller boosts as oilfield maintenance was completed, This Day report says. Iraq experienced the largest decline, dropping by 50,000 bpd, yet the country still exceeds its OPEC+ target.
OPEC produced about 280,000 bpd more than the implied target for the nine members under supply cut agreements, with Iraq accounting for the majority of the excess.
The Reuters survey aims to track market supply, utilizing shipping data from external sources, LSEG flow data, and information from companies that monitor flows such as Petro-Logistics and Kpler. The survey also includes insights from sources at oil companies, OPEC, and consultants.
The cuts led by OPEC and its partners, particularly Saudi Arabia, have been somewhat successful in balancing global markets against an influx of new supplies from the US and other regions in the Americas. Currently, Brent crude futures are trading near $87 a barrel, approaching a two-month high.
