OPEC+ oil supply fell by 125,000 barrels per day in June

Oil production by OPEC and its allies, including Russia, fell in June to 40.8 million barrels per day (mbd), some 125,000 bpd less than what was extracted in May, according to estimates published on Wednesday by the Organization of Petroleum Exporting Countries (OPEC).

Russia and Saudi Arabia, by far the two largest producers in the OPEC+ alliance, were the ones that turned off the taps the most last month, with declines of 114,000 and 76,000 bpd that left their output at 9.13 and 8.9 mbpd, respectively.

The figures are based on estimates from several independent institutes, the average values ​​of which are published by OPEC in its monthly report.

Among them, Venezuela stands out, whose extractions rose between May and June from 830 thousand to 851 thousand bpd, while Libya increased it by 24 thousand barrels, up to 1.2 mbd, and Iran by 13 thousand barrels, up to 3.25 mbd.

These three OPEC partners are exempt from the commitment to limit their output to support crude prices. Without the extractions of these three, the group produced 35.3 mbd last month.

Forced cuts

While several countries cut their production in June, others increased it slightly.

At its last ministerial conference, the alliance decided to extend until the end of 2025 the current cuts in its oil supply, equivalent to almost 6% of global crude demand.

These limits leave the maximum joint production limit at 39.72 mbd (excluding that of Iran, Venezuela and Libya), from which a total of 2.2 mbd of voluntary and additional cuts by various partners must be subtracted.

OPEC’s monthly report leaves its forecast for global crude oil demand unchanged in the short and medium term, with year-on-year growth of 2.25 mbd in 2024 and 1.85 mbd in 2025, a year in which the planet would burn an average of 106.3 mbd.

Vienna / EFE