OPEC+ countries in June 2022 increased oil production by 420 thousand barrels per day (bpd), but lagged behind the production target by 2.77 million bpd. This follows from the July report of the International Energy Agency (IEA).
Oil production by members of the alliance increased by 420 thousand bpd compared to May - from 37.62 million bpd to 38.04 million bpd. Meanwhile, the target production level of OPEC + countries for June was 40.81mln bpd. Thus, the lag from the plan was 2.77mln bpd.
OPEC+ countries have been cutting oil production since May 2020 to stabilize the market, but are already restoring it as this plan is implemented. For example, since August 2021, they adhered to the schedule to increase oil production by 400 thousand bpd per month, since May the plan was slightly updated - the rate of production growth has increased to 432 thousand bpd per month due to new baseline production levels for some countries. However, due to the lack of spare capacity, the alliance members do not always reach their target levels. For example, the June OPEC+ agreement to cut oil production was again overfulfilled - the level of compliance reached 314% against 261% a month earlier.
According to the IEA, Russia increased production in June by 480 thousand bpd compared to May, to 9.74 mln bpd. Saudi Arabia increased production by 120 thousand bpd to 10.62 mln bpd. Overall, OPEC countries fulfilled the OPEC+ deal in June by 229% and non-OPEC countries by 461%, the IEA noted.
GSV "Russia - Islamic world"
Photo: Creative Commons
Based on materials from TASS