OPEC countries (excluding Iran, Libya and Venezuela) participating in the OPEC+ agreement reduced oil production by 632,000 bpd to 23.482 million bpd in May 2023, after the start of voluntary production cuts by several OPEC+ countries. This follows from the OPEC's June report.
On April 2, some OPEC+ countries announced voluntary oil production cuts from May to the end of 2023. At the June 4 meeting in Vienna, these countries extended the restrictions until the end of 2024. The total reduction amounts to 1.66 million bpd. Among OPEC countries, Saudi Arabia, UAE, Iraq, Kuwait and Algeria announced voluntary reductions.
In May Saudi Arabia reduced production by 519 thousand bpd, slightly higher than the voluntary reduction announced by the kingdom (500 thousand bpd). The UAE reduced production by 140 thousand bpd (the declared reduction - 144 thousand bpd), Algeria - by 36 thousand bpd instead of the planned 48 thousand, Kuwait - 95 thousand bpd (the declared reduction - 148 thousand bpd). Iraq increased its production by 22 thousand bpd in May, although it announced about reduction by 211 thousand bpd.
In addition to voluntary cuts, the OPEC+ countries, according to the plan, from November 2022, had to reduce oil production by 2 million bpd of the August level. According to the agreement, 10 OPEC countries were to cut production by 1.273 mln bpd to 25.416 mln bpd. In May, the real volume of the OPEC countries production was 23.482 mln bpd, which is 1.934 mln bpd lower than the OPEC+ level.
Ten out of 13 OPEC members are participating in the OPEC+ agreement to cut oil production, as Iran, Libya and Venezuela were exempted from the restrictions. In May, Venezuelan oil production increased by 9,000 bpd to 735,000 bpd, Libya increased by 8,000 bpd to 1.169 million bpd, and Iran increased production by 61,000 bpd to 2.679 million bpd. In general, all 13 OPEC countries reduced their oil production in May by 464,000 bpd to 28.065 mln bpd.
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Based on materials from TASS