OPEC is struggling to meet modest oil output targets, presenting a problem for President Joe Biden, who is expected to focus heavily on production during a Middle East trip as he faces soaring gasoline prices.
By Washington Examiner – Breanne Deppisch
Jun 14, 2022
Output among OPEC member countries dropped last month to roughly 28.5 million barrels a day, according to newly published data from the cartel, a 176,000 bpd decline from April.
The group attributed the May numbers to closures of major refineries, including in Libya, which reported a nationwide decrease of 186,000 bpd.
Nigeria saw the second-largest decrease, of 45,000 bpd, followed by Iraq, which saw a reduction of 21,000 bpd.
In the report, OPEC also cited declines in production from Equatorial Guinea, Gabon, Irán, and Venezuela.
Several OPEC members increased production month over month, including Algeria, Congo, Saudi Arabia, and the United Arab Emirates, but it was not enough to drive up overall cartel production. The Saudis and the UAE had the largest increases, OPEC said, and raised production by a combined average of 91,000 bpd.
“Looking ahead, current geopolitical developments and the uncertain roll-out of the pandemic toward the end of the second half of the year continue to pose a considerable risk to the forecast recovery to pre-pandemic levels,” OPEC said in the report.
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Read More: Washington Examiner – OPEC struggles to hit production targets, leading to oil price hikes
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