June 22, 2024
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OIL & GAS

OPEC Oil Output Rises in May, Led by Nigeria, Iraq

The Organization of the Petroleum Exporting Countries (OPEC) oil output increased in May, according to a Reuters survey released on Tuesday. The rise in production was driven by higher exports from Nigeria and Iraq, which counterbalanced the ongoing voluntary supply cuts by some members within the wider OPEC+ alliance.

OPEC pumped 26.63 million barrels per day (bpd) in May, marking an increase of 145,000 bpd from April. This information was derived from a survey based on shipping data and industry sources.

Despite pledges to compensate for earlier over-production by making further cutbacks throughout the rest of 2024, Iraq, OPEC’s second-largest producer, saw an increase in output. OPEC+ member Kazakhstan made similar pledges.

Several members of OPEC+, which includes OPEC, Russia, and other allies, had implemented new cuts in January to address economic weaknesses and increased supply from outside the group. Producers decided on Sunday to maintain these cuts for the third quarter, having previously extended them until June.

According to Reuters, Iraq and Nigeria each increased their output in May by 50,000 bpd. Smaller production hikes were observed in Saudi Arabia and the United Arab Emirates. Conversely, Algeria reduced its output due to oilfield maintenance.

OPEC pumped about 250,000 bpd more than the implied target for the nine members covered by supply cut agreements, with Iraq being the primary contributor to the excess output.

Among the countries not required to cut output, Iran and Venezuela slightly boosted their production. Iran’s output is nearing a five-year high reached in November, following one of OPEC’s largest output increases in 2023 despite ongoing U.S. sanctions.

The Reuters survey aims to track supply to the market and is based on various sources, including shipping data provided by external sources, LSEG flows data, information from companies that track flows such as Petro-Logistics and Kpler, and information from oil companies, OPEC, and consultants.

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