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OPEC+ states boost oil output by 130,000 bpd in May, says IEA

The participants of the alliance have been reducing oil production since May 2020 for stabilizing the market, restoring it though as the plan is implemented

MOSCOW, June 15. /TASS/. The countries participating in the OPEC+ agreement on crude production cuts boosted output by 130,000 barrels per day in May 2022, though they are behind the planned output figures by 2.79 mln barrels per day, the International Energy Agency (IEA) said in its June report released on Wednesday.

The volume of crude output by participants of the alliance rose by 130,000 barrels per day compared with April from 37.45 mln barrels per day to 37.58 mln barrels per day, whereas the targeted production level for OPEC+ states in May amounted to 40.37 mln barrels per day. This brings the lag to 2.79 mln barrels per day.

OPEC+ states have been reducing oil production since May 2020 for stabilizing the market, restoring it though as the plan is implemented. Particularly, they have been adhering to the schedule of increasing production by 400,000 barrels per day each month since August 2021, while starting May the plan has been slightly adjusted with rates of production growth up to 432,000 barrels per day each month due to new base production levels for certain nations. However, the participating countries do not always reach the targeted levels due to the lack of available facilities. For example, the OPEC+ deal was outperformed again in May as the compliance level reached 261% compared with 223% in the previous month.

Russia increased oil production by 150,000 barrels per day in May compared with April to 9.3 mln barrels per day, while Saudi Arabia boosted output by 70,000 barrels per day to 10.5 mln barrels per day, the International Energy Agency said. In previous month it said Russia’s crude output went down by 900,000 barrels per day in April compared with March due to sanctions, supplies to the global market decreased by 1 mln barrels per day, whereas the decline in the second half of 2022 might reach 3 mln barrels per day.

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