The OPEC+ countries participating in the agreement on the oil output cut in May 2021 increased its production by 320,000 barrels per day (bpd), to 40.39 million bpd, mainly due to Saudi Arabia, which compensates for 1 million barrels voluntarily reduced in February within the OPEC+ agreements, Report informs referring to the June report of the International Energy Agency (IEA).
So, in May, Saudi Arabia in May increased oil production by 340,000 bpd, up to 8.48 million bpd. But the kingdom is still overfulfilling its norm of cutting oil production by nearly 50 percent. In May, Russia reduced oil output by another 20,000 bpd, to 9.52 million bpd, fulfilling the terms of the agreement by 94 percent.
In the same month, ten OPEC countries in May fulfilled the agreement by 124 percent of the plan, and the non-OPEC countries by 94 percent.
In June, production of OPEC+ countries, according to the agreement, will grow by 0.7 million bpd, and in July - by another 0.84 million bpd. Thus, in July, the overall reduction in oil output in the alliance will amount to 5.8 million bpd against 9.7 million bpd in May last year.
In addition, according to the IEA, the largest oil producers in OPEC+, such as Saudi Arabia, the UAE, and Russia, are already investing in expanding or maintaining production capacity. So, in OPEC countries alone, this figure in 2022 will grow by 0.2 million bpd, to 34.3 million bpd. In total, the free effective capacities of the OPEC+ countries will increase to 50.55 million bpd in 2022 compared to 50.37 million bpd.