OPEC oil output rose in May, as higher exports from Nigeria and Iraq offset the impact of ongoing voluntary supply cuts by some members as part of the OPEC+ agreement, a recent survey has found.
According to the Reuters survey, which was based on shipping data and information from industry sources, the Organization of the Petroleum Exporting Countries (OPEC) pumped 26.63 million barrels per day (bpd) last month, an increase of 145,000 bpd from April.
Output increase from Iraq and Nigeria
The increase in output from Iraq, OPEC’s second-largest producer, comes despite the country and fellow OPEC+ member Kazakhstan pledging to compensate for earlier over-production by making further cutbacks for the rest of 2024.
OPEC+ extends output cuts
Several members of OPEC+, which includes OPEC, Russia, and other allies, had made new cuts in January to counter economic weakness and increased supply outside the group. Producers decided on Sunday to keep these cuts in place for the third quarter, having earlier extended them until June.
The survey found that Iraq and Nigeria each raised output by 50,000 bpd, while Algeria cut output due to oilfield maintenance.
Exceeding production targets
Overall, OPEC pumped about 250,000 bpd more than the implied target for the nine members covered by supply cut agreements, with Iraq accounting for the bulk of the excess.
Output increases from Iran and Venezuela
Moreover, among OPEC members not required to cut output, Iran and Venezuela boosted their production slightly. Iran’s output is now near a five-year high reached in November, after posting one of OPEC’s biggest output increases in 2023.
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