OPEC’s May output highest since January - Platts

According to a latest report published by S&P Global Platts late-Tuesday, the OPEC producers’ crude output rose 270,000 b/d to 32.12 mmb/d in May compared to April.

May production rose as Iraqi output rose steeply alongside Libyan and Nigerian production levels. Libya and Nigeria's combined January-May average output of 2.312 MMb/d is now 101,000 b/d higher than their October levels.

Eklavya Gupte, senior editor, Europe and Africa oil news, S&P Global Platts, noted: “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.”

Gupte added: “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.”