OPEC failed to meet its goal of increasing oil output promised under the deal with its allies, a Reuters survey showed, as production cuts in Libya and Nigeria offset rising supply from Saudi Arabia Arabia and other major producers.
It pumped 28.52 million barrels per day (bpd) in June, the survey showed, down 100,000 bpd from May’s revised total. OPEC had planned to raise June production by about 275,000 barrels per day.
OPEC+ is trying to reverse the 2020 production cuts made due to the pandemic, although many of the countries are facing several difficulties. OPEC+ in its meeting on Thursday insisted on the planned increase in its production for August.
The deal called for an increase of 432,000 bpd in June from all OPEC+ members, of which about 275,000 bpd is shared by the 10 OPEC producers covered by the deal. Supply from the 10 rose by just 20,000 bpd, the survey showed.
Output has fallen short of promised increases between October and April, with the exception of February, according to Reuters surveys, as many producers are unable to pump more barrels due to insufficient investment, a trend accelerated by the pandemic.
In Libya and Nigeria the biggest reductions
The largest decline was in Libya, where supply fell by 170,000 bpd as unrest continued to limit the country’s output. Libya is one of the members exempted from the obligation of voluntary cuts.
The second largest decline of 80,000 bpd came from Nigeria, where outages and maintenance curbed output. Refinitiv data called for a drop in June exports of at least 100,000 bpd, as did two other survey sources that track flows.
Iraqi supply also fell, with survey sources pointing to lower exports.
Saudi Arabia, the United Arab Emirates and Kuwait added a combined 130,000 bpd. Saudi Arabia’s output was more than 100,000 bpd short of its quota, the survey found.
Production in Iran and Venezuela, the other two exempt producers, also increased.