The Organization of Petroleum Exporting Countries (OPEC) saw a rise in oil output in May, primarily driven by increased exports from Nigeria,.This boost helped offset the impact of ongoing voluntary supply cuts by some OPEC members who are aligned with the wider OPEC+ alliance.
In May, both Nigeria and Iraq increased their oil production by 50,000 barrels per day (bpd). The survey also noted smaller production hikes in Saudi Arabia and the United Arab Emirates. Algeria was the only country to reduce output due to oilfield maintenance.
OPEC’s total oil production reached 26.63 million bpd in May, an increase of 145,000 bpd from April. The survey’s findings are based on shipping data and information from industry sources.
Despite pledges to compensate for earlier over-production, Iraq, OPEC’s second-largest producer, managed to increase output. This comes as Iraq, along with OPEC+ member Kazakhstan, had committed to further cutbacks for the remainder of 2024.
Several members of the OPEC+ coalition, which includes OPEC, Russia, and other allies, implemented new cuts in January to counter economic weakness and increased supply from outside the group. Producers decided on Sunday to maintain these cuts through the third quarter, having previously extended them until June.
The survey found that OPEC pumped approximately 250,000 bpd more than the implied target for the nine members covered by the supply cut agreements, with Iraq accounting for the majority of the excess production.
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