Opec production increased by 50,000 b/d last month to a 13-month high of 26.80mn b/d as overproducing countries in the broader Opec+ grouping are coming under increasing pressure to improve compliance. The biggest gains came from Iraq, where last month’s 70,000 b/d production increase meant that it was producing a massive 350,000 b/d above quota.
Opec production in July was 530,000 b/d more than a year ago, despite a number of members joining Saudi Arabia in deep voluntary production cuts from January. This is partially due to poor compliance from producers such as Iraq, but the key driver has been robust output gains from exempt producers, primarily Iran. Meanwhile the 200,000 b/d increase in the UAE’s underlying Required Production figure from January has also contributed (MEES, 9 June 2023). (CONTINUED - 993 WORDS)
