OPEC oil production increased in June for the second consecutive month, according to a Reuters survey. The rise was driven by higher output from Nigeria and Iran, despite ongoing voluntary supply cuts by other members and the broader OPEC+ alliance.
In June, OPEC pumped 26.70 million barrels per day (bpd), up by 70,000 bpd from May. This increase occurred even as OPEC+ extended most of its output cuts until the end of 2025 to support the market amid weak demand growth, high interest rates, and increased production from the United States.
Nigeria boosted its output by 50,000 bpd, supported by smaller increases from Iran and Algeria following oilfield maintenance. Meanwhile, Iraq saw the largest decrease of 50,000 bpd, although it still exceeded its OPEC+ production target.
Overall, OPEC members covered by supply cut agreements exceeded their implied target by about 280,000 bpd, with Iraq contributing the majority of this surplus.
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The Reuters survey tracks market supply using shipping data, LSEG flows data, and information from industry sources such as Petro-Logistics, Kpler, oil companies, OPEC, and consultants.
Led by Saudi Arabia, OPEC and its allies have managed to stabilize global markets against increased supplies from the US and other parts of the Americas. Brent crude futures are trading around $87 per barrel, nearing their highest level in nearly two months.
While higher oil prices could pose challenges for consumers dealing with inflation, they are expected to boost revenue for OPEC+ members, whose economies heavily rely on oil sales to fund government spending.