The 13 member countries of OPEC have exported on average 22.6 million barrels a day in June. And that is almost 2 million barrels less than in May. Saudi Arabia has suffered the largest production cuts, when it exported on average 7.5 million barrels a day, that is almost a million less that OPEC countries agreed on in spring. Moreover, it’s the lowest value since Saudi Arabia‘s production of 2002.
Other countries also had to reduce production more that has been agreed – United Arab Emirates, Kuwait, Iraq or Nigeria. Oil supplies from Iran and Libya remained stable in June, while Venezuela reduced its production slightly. The oil production cuts were a reaction on oil demand, which remains limited due to anti-pandemic measures implemented in some major economic centers such as the US or Latin America. Oil demand should increase in second half of 2020, and oil production countries could increase their production values in a reaction to that.