OPEC’s crude output was up 270,000 barrels per day in May – driven by output recoveries in Libya and Nigeria- both of which are exempt from the cut agreement, according to an S&P Platts Global Survey.
Production rose despite high compliance from Saudi Arabia and Angola.
It was the first time since October that OPEC observed a month-on-month rise in production.
The survey attributed that increase to growth in Libya and Nigeria, which are now averaging 2.312 million bopd – 101,000 higher than their levels in October.
Iraq also saw production rise by 70,000 bopd to 4.43 million bopd in May.
Despite the rise, among the 11 members with quotas under the production cut deal, compliance was 117%, according to Platts calculations.
Output was 350,000 bopd above the cartel’s stated ceiling of 32.5 million bopd when Indonesia is included.
Saudi Arabia-OPEC’s largest producer – saw production fall to 9.93 million bopd last month, down 40,000 bopd from April.
The country has consistently cut more than its quota for five months in a row – the only country to do so.
Angola also saw production fall 40,000 bopd from the previous month to 1.64 million bopd in May.
The survey adds that with Iraq, Libya and Nigeria expected to continue to increase production, it may pose a challenge for OPEC as it seeks to rebalance the market.