According to a Reuters survey, OPEC oil output increased for a second consecutive month in June, as higher supply from Nigeria and Iran offset the impact of voluntary supply cuts by other member countries as part of the OPEC+ agreement.
The Organization of the Petroleum Exporting Countries (OPEC) pumped 26.70 million barrels per day (bpd) last month, up 70,000 bpd from May. This increase comes after OPEC saw a rise in production in May as well, breaking a streak of declines that had lasted several months.
The higher output from Nigeria and Iran was able to counterbalance the ongoing supply cuts being implemented by other OPEC members. These cuts are part of the broader OPEC+ deal, where OPEC countries and their allies have agreed to reduce oil production in an effort to support global prices.
While OPEC’s total production rose in June, the bloc is still producing well below its target under the OPEC+ agreement. The survey found that OPEC achieved 162% compliance with its output targets last month, down from 163% in May.
The continued increases in OPEC’s production, albeit modest, suggest that the global oil market remains tight, with demand for crude oil still outpacing supply. This dynamic has helped to support oil prices, which have remained elevated in recent months amidst global economic and geopolitical uncertainties.