(MENAFN- AzerNews)
By Alimat Aliyeva
According to a survey by S&P Global Commodity Insights, in
May, OPEC+ saw mixed changes in production volumes among its
members, Azernews reports.
Nine OPEC members exceeded their daily targets by 320,000
barrels per day, while daily crude oil production increased by
100,000 barrels (barrels per day), primarily due to increased
production in Nigeria and Iraq. On the other hand, non-OPEC allies
such as Russia, Kazakhstan and Mexico have cut production, bringing
the alliance's total output down by 40,000 barrels per month to 41
million barrels.
These changes come at a time when non-OPEC+ countries such as
the United States, Canada and Guyana are struggling to stabilize
the oil market amid rising production, economic difficulties in
China and internal disagreements over quota compliance.
Against this dynamic, Nigeria and Iraq have significantly
increased production, despite persistent problems such as oil
theft. Due to group changes and internal competitiveness, the UAE
and Gabon have also slightly exceeded production. Meanwhile,
geopolitical tensions have also affected production decisions.
S&P Global Commodity Insights reported that although Iraq
agreed in May to compensate for excess production, it increased
production by 40,000 barrels per day, 280,000 barrels above the
current target, to 4.28 million barrels per day. The current oil
production in Iraqi Kurdistan is estimated at 210,000 barrels per
day.
Quota-free Mexico also contributed to OPEC+ production cuts,
producing 50,000 barrels of oil less per day due to depletion of
old fields, and damage to South Sudan's only export pipeline
through Sudan resulted in the loss of tens of thousands of
barrels.
The study showed that OPEC+ remains a major player in the global
oil market, controlling about 40 percent of global production,
while facing constant pressure on market dynamics and compliance
with internal quotas. Its next key meeting is scheduled for August
1, at which additional decisions on production regulation will be
discussed.
S&P Global Commodity Insights concluded: "Oil producers whose
quotas have been exceeded must submit their plans to compensate for
the increase in production in the first half of the year by the end
of June. The OPEC+ Alliance, created in 2016 with the aim of
gaining a larger market share, will hold the next meeting of the
Joint Monitoring Committee on August 1, which will monitor oil
production.
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