OPEC crude oil production falls 180,000 barrels per day in May

OPEC's crude oil production fell by approximately 180,000 barrels per day (bpd) in May compared to April, reaching a total of 18.83 million bpd. The decline was driven by decreases in Iran, Libya, Nigeria, and Congo, while Saudi Arabia, the UAE, Iraq, and Venezuela recorded increases. The data reflects ongoing production adjustments within the group, which has been managing output through voluntary cuts and quotas. OPEC maintains its forecast for global oil demand growth this year, despite mixed production trends among member states. The report comes ahead of the next OPEC+ meeting, where production policy for the second half of the year will be discussed. The figures highlight continued compliance challenges and geopolitical factors affecting output in certain countries.

Global Impact

The production decline tightens global oil supply modestly, supporting prices and benefiting net exporters like Saudi Arabia and Russia, while adding to inflationary pressures for import-dependent economies such as India and Japan. Geopolitically, the drop in Iran and Libya highlights instability risks that could escalate further, potentially disrupting broader Middle East and North African supply chains.