OPEC Crude Oil Production Held Steady, Third Month in a Row

The decline in production was mainly on account of minor dip in production in Iraq and Nigeria.

SEATTLE (Oil Monster): The Organization of the Petroleum Exporting Countries (OPEC) countries reported steady crude oil production in June. This is the third consecutive month of steady oil output by OPEC countries, despite higher than agreed pumping by certain member countries.

According to a Bloomberg survey, the OPEC oil production averaged at 26.98 MMbpd in June 2024, down from the previous month by 80,000 bpd. The decline in production was mainly on account of minor dip in production in Iraq and Nigeria.

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The survey suggests that Iraq and the UAE failed to fully implement cutbacks as agreed earlier during the beginning of the year. Additionally, Iraq has failed to implement additional compensation curbs, aimed at offsetting earlier cheating.

The cuts by OPEC countries have played a key role in balancing the global supply, thus offsetting the increased supplies from the U.S. The Brent crude prices have been on the rise, hitting the highest level in two months. The OPEC nations are required to completely deliver their pledged reductions, in order to ensure further hike in crude oil prices. However, the implementation of cuts have been partial so far.

Iraq’s crude oil output recorded a decline of 30,000 bpd to 4.25 MMbpd in June this year. Meantime, Saudi Arabia’s oil production remained more or less stable at 8.99 MMbpd, the Bloomberg survey noted.