OPEC’s Crude Oil Production Rose in June


Nov. 20 2020, Updated 4:20 p.m. ET

OPEC’s crude oil production 

On July 2, a Reuters survey showed that OPEC’s crude oil production increased by 320,000 bpd (barrels per day) to 32,320,000 bpd in June—compared to the previous month. The rise in OPEC’s crude oil production pressured oil prices. Brent and WTI oil prices fell 2.7% and 0.3%, respectively, on July 2.

The iShares US Energy ETF (IYE) fell ~1.7% on July 2. The index is composed of US companies in the energy sector. Core Laboratories (CLB), Superior Energy Services (SPN), Ensco (ESV), and Rowan Companies (RDC) decreased 10.7%, 7.1%, 4.7%, and 4.6%, respectively, on July 2. These stocks were the top percentage losses in IYE’s portfolio during the same period.

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OPEC’s production hit a 13-month low in May. The production increased in June due to the rise in production from Saudi Arabia and Iraq. These countries are the top two oil producers among OPEC members. Saudi Arabia’s production increased by 700,000 bpd to 10,700,000 bpd in June, which is the highest level since November 2016. Near-record production from Saudi Arabia could pressure oil prices.

On the other hand, the production declined from Libya, Iran, Nigeria, and Venezuela. Libya’s production declined by 280,000 bpd in June compared to the previous month. The decline from these countries wasn’t intended along the lines of self-imposed supply cuts.

Supply cuts 

On June 22, OPEC producers and Russia decided to increase the output. OPEC has pledged to bring the supply cut compliance back to 100% from higher levels due to unintended supply drops from member countries. 


Near-record production from Saudi Arabia and a rise in production from other OPEC members could pressure oil prices. However, unexpected supply outages from Libya and Canada, sanctions on Iran, and the chronic drop in Venezuela’s production due to mismanagement could help oil prices.

Next, we’ll discuss Russia’s crude oil production.


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