SunSirs: OPEC's Oil Production Increased for the Second Consecutive Month in June

https://www.chemnet.com   Jul 03,2024 SunSirs

According to foreign news on July 2nd, a survey released on Tuesday showed that the Organization of the Petroleum Exporting Countries (OPEC) saw its second consecutive month of increase in oil production in June, as increased supply from Nigeria and Iran offset the impact of voluntary supply cuts from other member countries and the broader OPEC alliance.

According to shipping data and industry information, the survey found that OPEC production in June was 26.7 million barrels per day, an increase of 70,000 barrels per day compared to May.

Despite OPEC's decision last month to extend most of the production cuts until the end of 2025 to boost the market amidst weak demand growth, high interest rates, and rising US production, production growth has still occurred.

Nigeria will increase production by 50,000 barrels per day, while Iran and Algeria have also slightly increased production due to the completion of oilfield maintenance. The largest decrease in production was in Iraq, with a decrease of 50,000 barrels per day, but its production still exceeded OPEC's quota.

The investigation found that OPEC's production is about 280,000 barrels per day higher than the implied target of the nine member countries covered by the production reduction agreement, and Iraq still accounts for the majority of the excess production.

Among countries that do not need to reduce production, Iran's production is 3.2 million barrels per day. According to the survey, this is comparable to the level in November 2023 and the highest level since 2018.

Iran's semi official news agency Maher quoted Oil Minister Javad Owji on Tuesday as saying that Iran is selling crude oil to 17 countries, indicating that some countries may not comply with the sanctions still being imposed by the United States.

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