OPEC+ increases oil supply to 51.56 million barrels per day in June

The OPEC+ oil alliance, led by Saudi Arabia and Russia, increased oil supply in June to 51.56 million barrels per day, up 0.8% from the previous month, without fully complying with the agreed increases.

In total, the 22 'petro-states' that make up the alliance produced an additional 349,000 barrels per day in June, according to data published today in the monthly report of OPEC (Organization of the Petroleum Exporting Countries).

These figures, calculated based on estimates from independent institutes, reveal that the total increase fell short of what was agreed (411,000 barrels per day) last May by a key group within the alliance.

Since April 1, Saudi Arabia, Russia, Iraq, the United Arab Emirates, Kuwait, Kazakhstan, Algeria and Oman have been implementing an agreement to progressively return to the market a total of 2.2 million barrels per day that they had reduced by 2023.

In total, these eight countries produced an additional 395,000 barrels per day, 16,000 barrels per day less than the promised 411,000, with Saudi Arabia producing the most (+173,000 barrels per day, to 9.35 million barrels per day), followed by the United Arab Emirates (+83,000 barrels per day/3.05 million barrels per day), Kazakhstan (+64,000 barrels per day/1.84 million barrels per day) and Russia (+41,000 barrels per day, to 9.02 million barrels per day).

Initially, the Eight had planned to slowly unwind the 2.2 million barrels per day cut over a year and a half, with modest monthly increases of 137,000 barrels per day.

However, after the first quota came into effect on April 1, they decided to accelerate the increase, tripling the monthly volume to 411,000 barrels per day in May, June, and July. A further acceleration was agreed on July 5, bringing the August increase to 548,000 barrels per day.

Thus, between April 1 and August 30, 1.92 million barrels per day should have been added to the market, almost the majority of the total proposed increase (2.2 million barrels per day).

Production from the remaining members of the alliance, which committed to maintaining other reductions in effect until the end of 2026, should have remained the same as in May, which, evidently, not all of them managed to do.

According to calculations, in June, extractions fell in Mexico (-19,000 barrels per day, to 1.44 million barrels per day), Azerbaijan (-1,000 barrels per day, to 464 barrels per day) and Equatorial Guinea (-3 million barrels per day, to 54,000 barrels per day).

Venezuela, Iran, and Libya are excluded from all these commitments. These three OPEC partners are exempt from limiting their production due to various causes, such as sanctions and conflicts, that weigh on their oil industries.