OPEC+ is close to maximum capacity, BofA Global Research highlighted in one of its latest reports, which was sent to Rigzone earlier this month.
“At its meeting … [on June 30], OPEC+ maintained its 650,000 barrel per day quota increase for August as announced last month – of which we believe perhaps a third will actually be fulfilled,” BofA Global Research stated in the report.
“Data for May shows OPEC+ pumped nearly three million barrels per day less than its collective production quota of ~42 million barrels per day – due mainly to falling production in Russia as well as chronic output problems in e.g. Libya, Nigeria and Angola,” BofA Global Research added.
In the report, BofA Global Research noted that next month’s OPEC+ meeting will be a more important catalyst for the realization that spare capacity is running thin “while global balances continue to benefit from one-off reserve releases and world oil demand is far from firing on all post-Covid cylinders”.
The 30th, and most recent, OPEC and non-OPEC ministerial meeting on June 30 was held via videoconference and reconfirmed the decision to adjust monthly overall production up by 648,000 barrels per day in August, OPEC’s website shows.
According to a production table posted on OPEC’s website on June 30, Saudi Arabia and Russia have the joint top “required production” figure for August at 11 million barrels per day. The second highest required production figure for August is held by Iraq at 4.6 million barrels per day, followed by the UAE with 3.1 million barrels per day, the production table outlines.
At the 29th OPEC+ meeting, the group advanced a planned overall production adjustment for September and redistributed the 0.432 million barrel per day production increase over the months of July and August equally, OPEC outlined in a statement posted on its website last month.
OPEC+’s next meeting is currently scheduled to take place on August 3.
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