According to a Reuters survey published on Tuesday, the Organization of Petroleum Exporting Countries’ output increased in May 2024 due to increased oil exports from Iraq and Nigeria.
According to the poll, OPEC’s oil output increased in May as increased shipments from Nigeria and Iraq lessened the effects of some members’ continued voluntary supply cutbacks in line with the broader OPEC+ agreement.
Based on shipping statistics and information from industry sources, the poll concluded that the global oil cartel produced 26.63 million barrels of crude oil per day last month, an increase of 145,000 bpd from April.
The rise from Iraq occurs in spite of the fact that the nation, which is the second-largest producer in OPEC, and Kazakhstan, another member of OPEC+, promised to make up for past overproduction by further reducing output for the remainder of 2024.
Several members of OPEC+, which includes OPEC, Russia and other allies, made new cuts in January to counter economic weakness and increase supply outside the group.
Producers decided on Sunday to keep them in place for the third quarter, having earlier extended them until June. Iraq and Nigeria each raised output by 50,000 bpd and there were smaller hikes in Saudi Arabia and the United Arab Emirates, the survey found.
Only Algeria cut output as a result of oilfield maintenance. 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, the survey found.
Among those not required to cut output, Iran and Venezuela boosted output slightly. Iran is pumping near a five-year high reached in November after posting one of OPEC’s biggest output increases in 2023, despite United States sanctions still being in place.
The Reuters survey aims to track supply to the market and is based on shipping data provided by external sources and LSEG flow data. Other sources include information from companies that track flows, such as Petro-Logistics and Kpler, and information provided by sources at oil companies, OPEC and consultants.
