According to a Bloomberg survey, the nine OPEC countries bound by production targets increased Oil production by nearly 200 thousand barrels per day in May, Commerzbank’s commodity analyst Carsten Fritsch notes.
OPEC’s May output exceeds target
“This means that the increase in production fell slightly short of the agreed level. Nevertheless, the production target was exceeded by almost 350 thousand barrels per day. The deviation is mainly due to the United Arab Emirates and Iraq, although both countries barely increased their production or did not increase it further at all.”
“Of the three countries not bound by production quotas, Libya increased production to a 13-year high of more than 1.3 million barrels per day. Total OPEC production in May was 27.54 million barrels per day, also 200 thousand barrels per day higher than in the previous month.”
“In the coming two months, production volumes are likely to rise at a similar rate due to the decision to raise production targets, which should weigh on Oil prices.”
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