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OPEC Production Increased Less Than Planned in May
OPEC oil production rose less than planned in May, as Iraq implemented additional cuts to compensate for a previous increase in production, while Saudi Arabia and the United Arab Emirates made smaller increases than permitted, according to a Reuters survey.
The survey, published on Monday, showed that the Organization of the Petroleum Exporting Countries (OPEC) pumped 26.75 million barrels per day (bpd) last month, an increase of 150,000 bpd compared to April's total, with the largest increase coming from Saudi Arabia.
The OPEC+ alliance, which includes OPEC and partners including Russia, is accelerating plans to unwind the latest tranche of production cuts. Meanwhile, some members are being asked to make additional cuts to compensate for previous increases, theoretically limiting the impact of the current increases.
Under an agreement among eight OPEC+ members covering May production, five OPEC+ countries—Algeria, Iraq, Kuwait, Saudi Arabia, and the UAE—were scheduled to increase their production by 310,000 barrels per day.
According to the survey, the actual increase by the five countries was 180,000 barrels per day, as compensatory cuts from Iraq and lower exports from Saudi Arabia offset the increase. The survey found that Saudi Arabia recorded the largest increase, at 130,000 barrels per day.
Iraq's Oil Production Cut
The survey found that Iraq, which is under pressure to strengthen its compliance with OPEC+ production quotas, reduced its production to meet its commitment to the compensation cuts in May.
The survey also showed that the UAE pumped less than its OPEC+ quota in May, and a source familiar with the matter said this reflects the country's relatively limited compliance with the compensation cuts.
