• 4 minutes Will We Ever See 100$+ OIL?
  • 8 minutes Iran downs US drone. No military response . . Just Destroy their economy. Can Senator Kerry be tried for aiding enemy ?
  • 11 minutes Energy Outlook for Renewables. Pie in the sky or real?
  • 14 mins Shale Oil will it self destruct?
  • 1 day NYT: Mass Immigration Roundups in U.S. to Start Sunday
  • 1 hour White House insider who predicted Iran False Flag, David Goldberg found dead in his New York apartment
  • 7 hours Germany exits coal: A model for Asia?
  • 52 mins Excellent Choice: Germany's Von der Leyen Secures Powerful EU Executive Top Job
  • 3 hours Migration From Eastern Europe Raises German Population To Record High
  • 19 hours Carrot And Stick: North Korea Suggests It Might Lift Weapons Test moratorium
  • 16 hours South Korea imports No Oil From Iran in June - First-Half Imports Fall 37%
  • 4 hours Starlink Internet Courtesy of Tesla
  • 7 hours A Silence is heard
  • 13 hours Washington Post hit piece attacking oil, Christians and Trump
  • 2 days U.S.- Taiwan: China Says Will Freeze Out U.S. Companies That Sell Arms To Taiwan
  • 20 hours Trump vs. Xi Trade Battle, Running Commentary from Conservative Tree House
Alt Text

WTI Tops $60 On Gulf Of Mexico Shut-Ins

Oil prices ended the week…

Alt Text

Why Oil Tankers In The Middle East Shouldn’t Hire Mercenaries

Shipping companies sailing through the…

Alt Text

Fracking Under Fire In California

Despite its shale reserves and…

Tsvetana Paraskova

Tsvetana Paraskova

Tsvetana is a writer for Oilprice.com with over a decade of experience writing for news outlets such as iNVEZZ and SeeNews. 

More Info

Premium Content

OPEC Production Spikes – Has The Cheating Begun?

OPEC’s crude oil production increased by 270,000 bpd in May over April, to stand at 32.12 million bpd--the highest level since January this year--as exempt Libya and Nigeria saw their respective output sharply recovering, according to an S&P Global Platts survey.

Despite the high compliance from the cartel’s biggest producer and de facto leader Saudi Arabia, as well as from Angola, output jumped from exempt OPEC members Libya and Nigeria, and Iraq continued to under-comply significantly, increasing its production in May, the survey showed.

According to the Platts survey, Nigerian output increased last month to 1.73 million bpd, up by 80,000 bpd from April, and the highest level since March 2016, due to the restart of Forcados crude exports. According to Platts shipping data, two Suezmax tankers fully laden with crude oil set sail from Nigeria’s Forcados terminal at the end of May.

In Libya, crude output increased by 180,000 bpd to 730,000 bpd in May—the highest level since October 2014—with the giant Sharara field resuming production, and exports from both key eastern and western ports rising steadily.

Expectations are that output from Libya and Nigeria will continue to rise in the summer, which will be, for OPEC, a “tricky period in its attempt to accelerate the market’s rebalancing,” Platts said.

While production at OPEC’s no.1 producer Saudi Arabia dropped to 9.93 million bpd in May, down 40,000 bpd from April, output at the cartels no.2. producer —Iraq—increased, by 70,000 bpd to 4.43 million bpd in May, the Platts survey found. Iraq continues to go rogue, and its compliance in the first five months of the deal is 70 percent, one of the least-compliant producers, according to calculations by Platts.

OPEC’s no.3 Iran—which was allowed to slightly raise and cap output at 3.797 million bpd in the deal—was just below that level, at 3.78 million bpd in May, Platts said. Related: The Dark Side Of The Oil Tech Boom

“Despite strong compliance overall so far, OPEC’s efforts have not borne much fruit, as far as oil prices are concerned. If global stocks do not start to show demonstrative signs of steady draws, OPEC may have to be more creative with its strategy,” Eklavya Gupte, Senior Editor, Europe and Africa Oil News, S&P Global Platts, said.

“To add to this, OPEC could face a brewing political crisis as two key members have broken diplomatic ties with Qatar. In the past, the group has managed to put aside political rivalries to focus on production management, but geopolitical risk is always something that bears watching within OPEC,” Gupte noted.

OPEC will release its Monthly Oil Market Report with data for May next Tuesday, 13 June.

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:




Download The Free Oilprice App Today

Back to homepage


Leave a comment
  • Naomi on June 07 2017 said:
    OPEC is a charade. Goldman Sachs controls oil prices. President Trump tells Goldie where to set the price.
  • JR on June 07 2017 said:
    US shale oil producers are now the marginal producers and are continuing to drive down the price. When oil prices rise high enough companies sell oil futures contracts to lock in an attractive price and then drill or complete more wells producing oil against the contract. OPEC has lost control of pricing at these levels. Trump is helping to drive down prices by allowing oil infrastructure to be completed and removing costly regulations which will make even more oil available.

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News
Download on the App Store Get it on Google Play