OPEC’s crude oil production rose by 180,000 barrels per day (bpd) to 27 million bpd in May, with producers part of the OPEC+ agreement raising output by much less than the 411,000 bpd headline hike planned for last month as some members compensated for past overproduction.
The five OPEC members that have pledged cuts in the OPEC+ agreement – Saudi Arabia, Iraq, UAE, Kuwait, and Algeria – and are now gradually unwinding these cuts had to raise their combined output by 310,000 bpd in May.
But OPEC’s Monthly Oil Market Report (MOMR) showed on Monday that these five OPEC producers raised their output by much less than that figure.
OPEC leader and top producer, Saudi Arabia, raised its output by 177,000 bpd in May, the secondary sources in the OPEC report found. Saudi Arabia pumped 9.183 million bpd, fairly close to a target of 9.2 million bpd, per OPEC’s plan for production in May.
Iraq cut production by 50,000 bpd to 3.93 million bpd, compared to its target of 4.049 million bpd. Iraq is compensating for previous overproduction as it has been one of the main overproducers in the OPEC+ deal for years, alongside Kazakhstan and Russia, non-OPEC members of the OPEC+ pact.
Total OPEC+ production in May averaged 41.23 million bpd in May 2025, which is 180,000 bpd higher compared to April, the OPEC report showed.
The eight OPEC+ producers involved in the cuts increased output by 154,000 bpd – much lower than 411,000 bpd, due to the compensation cuts.
However, the most defiant OPEC+ producer, Kazakhstan, pumped as much as 1.803 million bpd in May, down by 21,000 bpd from April, but more than 300,000 bpd above its May quota of 1.486 million bpd.
One of the key goals of the increased OPEC+ quotas this summer is to “provide an opportunity for the participating countries to accelerate their compensation,” as OPEC has repeatedly said when it announced three 411,000-bpd hikes in three consecutive months.
The lower OPEC output compared to the plans may ease concerns of oversupply, although the market is now almost exclusively focused on potential supply disruptions in the Middle East amid an escalating Israel-Iran conflict.
By Michael Kern for Oilprice.com
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