Production outputs from Iraq and Nigeria increased by 50,000 BPD each.
Oil production figures from Nigeria and Iraq have influenced OPEC’s total oil production output for May with figures exceeding the implied monthly target by about 250,000 barrels per day (BPD).According to Reuters, production outputs from Iraq and Nigeria increased by 50,000 BPD each while other OPEC member countries like Saudi Arabia and the United Arab Emirates also made some significant contributions.
According to a survey based on shipping data and information from industry sources, OPEC member countries pumped 26.63 million BPD in May, 2024.
This indicated an increase of 145,000 BPD when compared with April production output while the target set for the nine members covered by supply cut agreements was exceeded by 250,000 BPD.
Nigeria’s designated production quota has been pegged at 1.5 million BPD although it still falls below the daily production target of 1.78 million BPD outlined in the 2024 budget.
According to the group chief executive officer (CEO), Nigerian National Petroleum Company (NNPC) Limited, Mele Kyari, the country’s oil production volume is close to 1.7 million BPD.
Iraq’s increased production comes amid the country’s (OPEC’s second-largest producer) pledge to further cut back production in 2024 to compensate for earlier over-production.
Algeria, a major player in oil production cut its output during the period due to the maintenance of its oilfield
May’s output also received a boost from some other countries with no output cut obligation like Iran and Venezuela.
OPEC and allies led by Russia, together known as OPEC+, agreed to embark on production cuts from late 2022. This has led to a total output cut of 5.86 million BPD (about 5.7% of global demand).
The global oil cartel further agreed to extend oil production output cuts into 2025 as the group seeks to shore up the market amid sluggish demand growth, high interest rates and rising rival U.S. production.