OPEC+ oil production falls in June, led by Russia and Iraq

In June, OPEC+ oil production fell to its lowest level in 11 months, with Russia and Iraq leading the declines.

Share:

Baisse production de pétrole OPEC+ juin

The Organization of the Petroleum Exporting Countries and its allies, known as OPEC+, cut their crude oil production by 130,000 barrels per day (b/d) in June, to 40.87 millions b/d. This decrease marks the level of production the lowest in eleven months, according to a survey conducted by S&P Global Commodity Insights. Russia and Iraq were the main contributors to this decline.

Background to Production Reduction

Since the beginning of the year, OPEC+ has implemented significant production cuts to stabilize oil prices on the world market. In June, OPEC member production rose slightly by 10,000 b/d to 26.76 million b/d, while non-OPEC production fell by 140,000 b/d to 14.11 million b/d.

Contributions from Russia and Iraq

Russia recorded a 140,000 b/d drop in production, bringing its total to 9.1 million b/d, the lowest level since December 2020. However, this figure remains above its quota of 8.98 million b/d. Iraq, meanwhile, reduced its production by 60,000 b/d to 4.22 million b/d. These reductions are part of producers’ efforts to comply with the quotas set by the alliance.

Responses from other OPEC+ members

Kazakhstan increased its production by 50,000 b/d to 1.54 million b/d. The three main producers who have exceeded their quotas have committed to submitting compensation plans to the OPEC Secretariat in early 2024. These plans aim to rectify overproduction by September 2025.

Impact and outlook

This OPEC+ production cut comes at a time when oil prices are beginning to react favorably, with a 14% rise in Dated Brent since the beginning of June, reaching $87.73 a barrel on July 8. The next meeting of the Joint Ministerial Supervisory Committee is scheduled for August 1, followed by a full ministerial meeting on December 1.

Nigeria back on stage

Nigeria, meanwhile, saw its production rise to 1.5 million b/d, the highest level in over three years, thanks to a sharp increase in exports and crude supplies to the Dangote refinery. This enabled Nigeria to meet its production quota for the first time since 2020, indicating a possible renaissance of its influence within the alliance.
The Platts survey measures production at the wellhead and is compiled from information provided by oil industry executives, traders and analysts, as well as by examining proprietary shipment, satellite and inventory data.

The expansion of the global oil and gas fishing market is accelerating on the back of offshore projects, with annual growth estimated at 5.7% according to The Insight Partners.
The Competition Bureau has required Schlumberger to divest major assets to finalise the acquisition of ChampionX, thereby reducing the risks of market concentration in Canada’s oilfield services sector. —
Saturn Oil & Gas Inc. confirms the acquisition of 1,608,182 common shares for a total amount of USD3.46mn, as part of its public buyback offer in Canada, resulting in a reduction of its free float.
OPEC slightly adjusts its production forecasts for 2025-2026 while projecting stable global demand growth, leaving OPEC+ significant room to increase supply without destabilizing global oil markets.
Talks between European Union member states stall on the adoption of the eighteenth sanctions package targeting Russian oil, due to ongoing disagreements over the proposed price ceiling.
Three new oil fields in Iraqi Kurdistan have been targeted by explosive drones, bringing the number of affected sites in this strategic region to five in one week, according to local authorities.
An explosion at 07:00 at an HKN Energy facility forced ShaMaran Petroleum to shut the Sarsang field while an inquiry determines damage and the impact on regional exports.
The Canadian producer issues USD 237 mn in senior notes at 6.875 % to repay bank debt, repurchase USD 73 mn of 2027 notes and push most of its maturity schedule to 2030.
BP revised upwards its production forecast for the second quarter of 2025, citing stronger-than-expected results from its US shale unit. However, lower oil prices and refinery maintenance shutdowns weighed on overall results.
Belgrade is engaged in complex negotiations with Washington to obtain a fifth extension of sanctions relief for the Serbian oil company NIS, which is majority-owned by Russian groups.
European Union ambassadors are close to reaching an agreement on a new sanctions package aimed at reducing the Russian oil price cap, with measures impacting several energy and financial sectors.
Backbone Infrastructure Nigeria Limited is investing $15bn to develop a 500,000-barrel-per-day oil refinery in Ondo State, a major project aimed at boosting Nigeria’s refining capacity.
The Central Energy Fund’s takeover of the Sapref refinery introduces major financial risks for South Africa, with the facility still offline and no clear restart strategy released so far.
PetroTal Corp. records production growth in the second quarter of 2025, improves its cash position and continues replacing key equipment at its main oil sites in Peru.
An explosion caused by a homemade explosive device in northeastern Colombia has forced Cenit, a subsidiary of Ecopetrol, to temporarily suspend operations on the strategic Caño Limón-Coveñas pipeline, crucial to the country's oil supply.
U.S. legislation eases access to federal lands for oil production, but fluctuations in crude prices may limit concrete impacts on investment and medium-term production, according to industry experts.
Permex Petroleum Corporation has completed a US$2mn fundraising by issuing convertible debentures, aimed at strengthening its cash position, without using intermediaries, and targeting a single institutional investor.
Petróleos de Venezuela S.A. (PDVSA) recorded $17.52bn in export sales in 2024, benefiting from increased volumes due to U.S. licences granted to foreign partners, according to an internal document seen by Reuters.
The detection of zinc in Mars crude extracted off the coast of Louisiana forced the US government to draw on its strategic reserves to support Gulf Coast refineries.
Commissioning of a 1.2-million-ton hydrocracking unit at the TANECO site confirms the industrial expansion of the complex and its ability to diversify refined fuel production.