OPEC production increases 280,000 bpd for May: Reuters survey

London, (Quantum Commodity Intelligence) – Oil output from the 13-member OPEC producer group increased in May, but lower volumes from Iran and West Africa limited the overall increase, according to a Reuters survey published Monday.

The survey said OPEC pumped 25.52 million barrels per day (bpd) in May, an increase of 280,000 bpd from April, noting output has risen every month since June 2020 – February 2021 being the exception.

OPEC production had been widely expected to increase under the OPEC+ agreement in early April, plus Saudi Arabia unwinding voluntarily cuts from the first quarter.  

The 23-member OPEC+ agreed in April to start softening production curbs of 350,000 bpd in May, 350,000 bpd in June, and a further 400,000 bpd for July.

Nigeria, Angola output down

As such, the biggest increase in May of 340,000 bpd came from Saudi Arabia as it began to unwind the voluntary cut, and raised output as part of the OPEC+ boost.

OPEC's No. 2 producer Iraq also pumped more in May, the survey found, adding an extra 70,000 bpd and pushing output beyond its quota.

These increases were limited by involuntary reductions elsewhere in the group.

The biggest drop was in Nigeria at 110,000 bpd versus April, where exports slowed from a number of terminals. Angolan supply, in long-term decline, also dropped by 60,000 bpd in May.

Iran, which has managed to raise exports since the fourth quarter despite U.S. sanctions, exported less in May due to lower demand from China. Iran output was down 100,000 bpd, said the survey.