OPEC+ Fails To Meet Output Target Once Again

Cat:

Related stories

Tinubu Departs Saint Lucia, Heads to Brazil for BRICS Summit

By Abiola Olawale President Bola Ahmed Tinubu departed Saint Lucia...

2027: Drama, Intrigues as Julius Abure Tells Otti to Quit Labour Party

By Abiola Olawale In a dramatic turn of events, Barrister...

FG Secures $100m for Lagos-Calabar Project from ECOWAS Bank

By Abiola Olawale The Nigerian government has reportedly secured a...

Ex- Arsenal Star Thomas Partey Faces Rape, Sexual Assault Charges in UK

By Abiola Olawale The Metropolitan Police have formally charged former...

Edwin Cortes: Prefers Being A Small Puerto Rican Than Big American

By Owei Lakemfa To be a citizen of the United...
  • Platts survey shows that OPEC+ missed its production target again in May.
  • In April, OPEC alone missed its target by 2.7 million barrels daily.
  • Angola, Equatorial Guinea, and Congo also produced well below quotas in May.

OPEC+ once again fell short of its oil production targets in May on continued production declines in many OPEC members, a survey by S&P Platts found, as cited by OPEC and Middle East managing editor Herman Wang.

In April, OPEC alone missed its target by 2.7 million barrels daily, and while there was a slight improvement in May, the total was still well below quotas. Last month, production in Nigeria dropped to the lowest since Platts has been surveying OPEC output, Wang noted.

Angola, Equatorial Guinea, and Congo also produced well below quotas last month, and most of the OPEC+ partners also produced less than agreed. Russia’s production actually inched up in May after falling in April.

OPEC+ agreed last week to boost production in July and August by 648,000 bpd instead of the originally agreed 432,000 bpd. Some observers took that to mean success for Western diplomacy, but the market reacted in what was perhaps a counterintuitive, at first glance, way, with prices actually rising after the announcement.

Indeed, many OPEC members have been struggling to fulfill their original production quotas, and that has been no secret. Only Saudi Arabia, the UAE, and Kuwait have spare capacity that can be quickly tapped to make up for shortfalls. However, they may be reluctant to do that as more spare capacity being tapped means less spare capacity left for when an outage happens.

“With only a handful of … OPEC+ participants with spare capacity, we expect the increase in OPEC+ output to be about 160,000 barrels per day in July and 170,000 bpd in August,” JP Morgan analysts wrote in a note, as cited by Reuters, this week.

What all this suggests is that, as the FT’s David Sheppard noted in a recent column, the world may need to brace up for even higher oil prices.

“China is reopening. People are flying again. Demand is going in the wrong direction,” Sheppard wrote. “All these factors point to rising oil prices until a level is reached that reduces consumption, probably by triggering an economic slowdown large enough to curtail demand. In other words, a recession for many economies.”

NB: Irina Slav wrote this article for Oilprice.com

Irina Slav
Irina Slavhttps://newdiplomatng.com/
At The New Diplomat, we stand for ethical journalism, press freedom, accountable Republic, and gender equity. That is why at The New Diplomat, we are committed to speaking truth to power, fostering a robust community of responsible journalism, and using high-quality polls, data, and surveys to engage the public with compelling narratives about political, business, socio-economic, environmental, and situational dynamics in Nigeria, Africa, and globally.

Subscribe

- Never miss a story with notifications

- Gain full access to our premium content

- Browse free from up to 5 devices at once

Latest stories

NDN
Latest News
Tinubu Departs Saint Lucia, Heads to Brazil for BRICS Summit2027: Drama, Intrigues as Julius Abure Tells Otti to Quit Labour PartyFG Secures $100m for Lagos-Calabar Project from ECOWAS BankEx- Arsenal Star Thomas Partey Faces Rape, Sexual Assault Charges in UKEdwin Cortes: Prefers Being A Small Puerto Rican Than Big AmericanJune 12 And The International Pursuit of Justice For Abiola, By Femi FalanaBreaking Down the West’s $146 Billion 2024 Defence Technology InvestmentG7 vs. the World: GDP, Population, and Military StrengthUS drillers cut oil and gas rigs for 10th week in a row, Baker Hughes saysExclusive! Tinubu Tips Late Ajimobi's Wife, Florence, Others for Ambassadorial PostsTinubu Mourns, Pays Tribute to Legendary Super Eagles Goalkeeper Peter RufaiNatasha vs Akpabio: Court Orders Senate President To Recall Senator NatashaHadi Sirika Denies Defection to ADC Coalition Rumors, Reaffirms Loyalty to Buhari, APCChina Snubs U.S. Crude for Third Month, Even as Ethane Trade RestartsHow Super Eagles Icon Peter Rufai passed Away at 61
X whatsapp