Recent OPEC oil production numbers show the cartel’s members are missing their production targets, jeopardizing President Joe Biden’s upcoming visit to Saudi Arabia to request more oil imports.
Hedge Fund Bison Interests posted this week about production reports, showing that South Sudan and Gabon have not met production targets.
— Bison Interests (@BisonInterests) June 14, 2022
“OPEC+ missed their #oil output target even more in May. Short thread with charts,”Bison Interests Tweeted.
Additionally, the hedge fund highlighted daily and monthly barrels. “This was the worst month for OPEC+ since we started sharing comments on this. Highlights (all in MM bbl/d),”Bison Interests Tweeted. “Total production for OPEC+ countries (excluding the OPEC exempt) was 37.60, falling short of the 40.37 quota by 2.77 MM bbl/d.”
“17/19 OPEC+ countries (excluding the exempt) missed their production quotas, the highest number of misses ever since we started sharing comments on this,”Bison Interest Tweeted.
Hedge fund also stated that Russian production is increasing materially right now.
“Worth noting,”Bison Interests Tweeted.
CNBC published an article about OPEC+’s failure to meet production targets. It also reported that analysts believe the organization has very limited surplus capacity.
This alliance [June 2]To reduce production earlier than originally agreed, they said they would boost production by 648,000 barrels per hour in July/August.
OPEC, its partners and allies decided to remove almost 10 million barrels of oil from the market for 2020 after Covid hit. Demand had already dwindled.
OPEC+ “kind of broken down,”An oil analyst firm’s lead analyst stated that oil prices rose after the alliance announced it would increase its supply faster.
CNBC spoke with Paul Sankey, Sankey Research.
“The whole system of OPEC has kind of broken down right now,”Sankey stated.
“Saudi has to make a choice — do we let the price go higher while maintaining a super emergency, super crisis level of spare capacity?”Sankey stated.
“Or do we add oil into the market and go to effectively almost zero spare capacity, and then what happens if Libya goes down?”Sankey stated.
Penny Starr’s journey on Twitter.
The full article is available here here