According to the OPEC Monthly Oil Market Report released on Tuesday, the cartel did not increase output in May as promised but instead it recorded losses for the month.
Saudi Arabia and the United Arab Emirates are the only members of the group with room to expand production. However, the increased production from the Kingdom and the Emirates has been counterbalanced by a bigger drop in production from Iraq, Libya, and Nigeria.
OPEC produced 28.508 million barrels per day in May, down 176,000 barrels per day from April 2022. According to OPEC’s secondary sources, the reduction is due to lower production in Equatorial Guinea (-2,000 bpd), Venezuela (-2,000 bpd), Iran (-20,000 bpd), Iraq (-21,000 bpd), Gabon (-32,000 bpd), Nigeria (-45,000), and, most importantly, Libya (-186,000 bpd).
Saudi Arabia produced 10.538 million bpd, according to direct reports. Gains in Saudi Arabia, which boosted output by 60,000 bpd to an average of 10.424 million bpd, the UAE, which grew production by 31,000 bpd, and Kuwait, which increased production by 27,000 bpd, largely offset these losses.
May’s actual OPEC member production was 24.541, a 1.048 million bpd shortfall from OPEC’s stated permits, for the ten OPEC countries who had allocated quotas totalling 25.589 (excluding Iran, Venezuela, and Libya).
The data prompted a rise in oil prices on the market. WTI was up 1.27% to $122.50 a barrel at 9:14 a.m. ET, while Brent was up 1.33% to $123.90 per barrel, on Tuesday.
