Nigeria and Iraq yet to meet their share of OPEC+ production cut as the entire member countries record the lowest production output in two decades in this month of May.
On average, the 13-member Organization pumped 24.77 million barrels per day (bpd) this month, down by 5.91 million bpd from April’s revised figure.
OPEC and its allies last month agreed to an output cut to offset a slump in demand and prices caused by the coronavirus crisis. An easing of government lockdowns and lower supply have helped oil prices LCOc1 more than double compared with a 21-year low below $16 a barrel in April.
“OPEC has made a strong start in May with its latest production cut, lowering supply by 5 million bpd versus April,” Daniel Gerber, chief executive of Petro-Logistics, which assesses OPEC supply by tracking tanker shipments said.
“However, compliance is far from perfect. With less than four weeks between the adoption and the start of the agreement, many countries had already committed volumes to buyers and have not managed to reduce supply to the agreed levels.” he added.
OPEC and its allies, known as OPEC+, agreed to cut supply by a record 9.7 million bpd from May 1. OPEC’s share, to be made by 10 members from their October 2018 output in most cases, is 6.084 million bpd.
So far in May, they delivered 4.48 million bpd of the pledged reduction, equal to 74% compliance, the survey found.