Organization of the Petroleum Exporting Countries' (OPEC) crude oil production output averaged 29.12 million barrels per day (b/d) in June, down 160,000 b/d from an estimated 29.28 million b/d in May, according to a just-released Platts survey of OPEC and oil industry officials and analysts.
Lower volumes from Iraq and Nigeria accounted for 110,000 b/d of the 160,000 b/d overall drop.
Excluding Iraq, which does not participate in OPEC output agreements, the 11 members bound by quotas (OPEC-11) pumped 26.74 million b/d in June, down 90,000 b/d from May's 26.83 million b/d, the survey showed.
But despite the lower volumes in June, the OPEC-11 overproduced their 24.845 million b/d target by 1.895 million b/d. The latest estimates suggest that compliance with the 4.2 million b/d of output cuts agreed in late 2008 increased to around 57.3% in June from 52.7% in May but remained well below the almost 82% achieved in March 2009.
"This is the Goldilocks market for now, not too hot, not too cold," said John Kingston, Platts global director of news. "Yes, OPEC is producing more than the International Energy Agency's call for OPEC crude for full-2010, but that's to be expected in the second quarter, when markets traditionally build inventories. Stocks are healthy from a consumer's perspective, but not so bulging that it is causing market anomalies. This stability is reflected in the narrow range prices have traded in for several weeks now."
Saudi Arabia and Kuwait boosted output, by 20,000 b/d and 10,000 b/d respectively, to produce 8.27 million b/d and 2.3 million b/d.
Elsewhere, volumes dropped by between 10,000 b/d and 70,000 b/d.
Iraqi output fell by 70,000 b/d to 2.38 million b/d in June from 2.45 million b/d in May as a result of weather-related export loading delays and a bomb attack on the northern pipeline network.
Nigerian volumes fell back to 2.01 million b/d from 2.05 million b/d, a drop of 40,000 b/d.
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