(Andrey Rudakov/Bloomberg News)
OPEC raised oil production last month as the group began a series of accelerated increases spurred by Saudi Arabia, according to a Bloomberg survey.
The 12 members of the Organization of the Petroleum Exporting Countries boosted supplies by 200,000 barrels a day in May to 27.54 million barrels a day, the survey showed. The Saudis accounted for about half of the increase.
OPEC and its allies stunned oil markets in early April by announcing they would start to revive output at three times the planned rate, briefly sending crude prices to a four-year low. Brent futures have since recovered slightly, trading near $65 a barrel in London on June 3.
Delegates have described the shift as a strategy designed by Riyadh to punish the coalition’s rogue members and recoup lost market share. At the weekend, the Saudis pressed OPEC+ to ratify a third super-sized hike, despite some objections from its partners.
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Saudi Arabia bolstered production by 110,000 barrels a day to 9.08 million barrels a day in May, the survey showed, though this hike fell short of the full amount the kingdom could have added under the agreement.
The next biggest boost came from Libya, which is exempt from OPEC+ quotas as it gradually recovers from years of conflict and instability. The North African exporter added 50,000 barrels a day to an average of 1.32 million barrels a day.
Iraq kept output flat, possibly in observance of its obligation to compensate for earlier overproduction. It pumped 4.18 million barrels a day, still considerably above its target, according to the survey.
The United Arab Emirates added just 10,000 barrels a day to 3.31 million barrels a day. Like Iraq, data compiled by Bloomberg indicate the UAE is exceeding its quota significantly, though figures compiled by OPEC’s secretariat in Vienna show both countries broadly in line with their commitments.
Saudi Arabia has warned fellow members it could push through several more accelerated monthly hikes — set at 411,000 barrels a day for the group — to fully reverse the latest restraints by October.
The OPEC+ nations involved in the accord to restore halted supplies, which also include Russia and Kazakhstan, will hold another call on July 6 to review levels for August.
Bloomberg’s survey is based on ship-tracking data, information from officials and estimates from consultants Rapidan Energy Group, FGE, Kpler Ltd. and Rystad Energy.
