OPEC’s monthly report last week and its shows that OPEC, as a group remains over compliant with the agreement that was agreed upon back in November last year between OPEC and non-OPEC countries led by Russia.
The deal has been a key support for the oil bulls since it came into existence back in 2016. In the 2018 agreement, OPEC, along with Russia led non-OPEC countries agreed to reduce production by 1.2 million barrels per day.
WTI is currently trading at $60.4 per barrel and Brent at $6.7 per barrel premium to WTI.
|
Target as per 2019 OPEC deal |
May production |
|
|
|
|
June production |
Algeria |
1.025 |
1.029 |
|
|
|
|
1.005 |
Angola |
1.481 |
1.474 |
|
|
|
|
1.418 |
Congo |
0.315 |
0.326 |
|
|
|
|
0.331 |
Ecuador |
0.508 |
0.53 |
|
|
|
|
0.528 |
Equatorial Guinea |
0.123 |
0.112 |
|
|
|
|
0.113 |
Gabon |
0.181 |
0.214 |
|
|
|
|
0.208 |
Iran |
N.A. |
2.367 |
|
|
|
|
2.225 |
Iraq |
4.512 |
4.745 |
|
|
|
|
4.718 |
Kuwait |
2.724 |
2.71 |
|
|
|
|
2.69 |
Libya |
N.A. |
1.17 |
|
|
|
|
1.113 |
Nigeria |
1.685 |
1.726 |
|
|
|
|
1.885 |
Saudi Arabia |
10.311 |
9.687 |
|
|
|
|
9.813 |
UAE |
3.072 |
3.060 |
|
|
|
|
3.083 |
Venezuela |
N.A. |
0.75 |
|
|
|
|
0.734 |
total |
26.18 |
29.898 |
|
|
|
|
29.830 |
- According to data from secondary resources, the OPEC has reached over-compliance with the 2018 agreement.
- It is important to note that many of the members remain non-compliant, while Saudi Arabia reduced production by more than the target.
- Iran production declining amid U.S. sanctions on Iran’s oil imports.
- Venezuela continues to see its production dwindling to a new low.
- Libya and Nigeria’s production would be a key influencing factor for oil price going ahead.