OPEC’s oil production dropped by another 68,000 bpd to 29.83 million bpd in June, as output from Iran and Libya—exempt from the production cut pact—and other members offset large increases in Saudi Arabia and Nigeria.
According to secondary sources in OPEC’s closely watched Monthly Oil Market Report published on Thursday, the cartel’s output hit a new low in recent years and was at the lowest in five years in June, just ahead of OPEC and its allies rolling over the production cuts into March 2020.
OPEC’s official figures are very close to last week’s Reuters survey, which showed that OPEC pumped 29.60 million bpd in June, the lowest monthly output since April 2014.
Last month, the largest drop in production was registered in Iran, whose crude oil production fell by 142,000 bpd to 2.225 million bpd, due to the U.S. sanctions on its industry. Iran’s production is now more than a million barrels per day down from its 2018 average of 3.553 million bpd, according to OPEC’s secondary sources, which the cartel uses as a benchmark to report production and compliance with the deal.
Iran has stopped supplying directly reported figures to OPEC regarding its production.
Production in Libya and Angola also fell significantly last month, by 58,000 bpd and 57,000 bpd from May, respectively. Venezuela booked another decline, by 16,000 bpd, bringing its crude oil production to just 734,000 bpd in June.
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Among OPEC’s members who boosted production, Nigeria led the increases with 129,000 bpd in June over May, while the largest producer Saudi Arabia raised its crude oil production by 126,000 bpd to 9.813 million bpd, still cutting more than its quota of 10.311 million bpd under the pact.
In July and August, Saudi Arabia is determined to keep its oil production below 10 million bpd and average monthly exports at below 7 million bpd, to “avoid excess stock building, particularly in oversupplied markets,” a Saudi source told Argus on Thursday.
Based on OPEC’s oil market outlook for 2020 in this month’s report, the cartel expects demand for its crude next year to be lower than its current production and to average 29.3 million bpd, down by around 1.3 million bpd from 2019.