Opec crude oil production dropped by a phenomenal 6.53mn b/d in May as producers slashed output during the first month of the new stringent production agreement reached in April (MEES, 1 April). Output of 24.37mn b/d is the lowest since 2002 according to MEES data, and June production should be lower still.
Although the cuts still fell around 1.2mn b/d short of planned levels, the achievement in taking so many barrels away from the market in such a short period of time is notable. Unsurprisingly the biggest laggard is Iraq, which produced 540,000 b/d more than its allocation in May. But Baghdad is operating in extenuating circumstances given the backdrop of severe economic and political upheaval. (CONTINUED - 992 WORDS)
