OPEC+ members exceeding quotas totaled 840,000 b/d excess May/June output: document

OPEC+ members whose crude production in May and June exceeded their quotas would have to make about 840,000 b/d in compensation cuts in July, August and September, under the terms of the alliance's supply accord, according to data presented to ministers and seen by S&P Global Platts July 15.

The 23-country OPEC+ coalition enacted record 9.7 million b/d cuts in May in response to the COVID-19 crisis. Those curbs are scheduled to be rolled back by about 2 million b/d in August, but the extra cuts by non-compliant members -- if fulfilled -- would offset nearly half of that.

A key monitoring committee -- which has kept the pressure on members to comply with their quotas -- meets July 15 to assess market conditions and review production levels.

As the data shows, though overall OPEC+ conformity among the 23 members has been strong since May at 98% for OPEC members and 96% for the 10 non-OPEC partners, individual country compliance has been uneven.

Iraq produced the most over its quota, by 348,000 b/d, followed by Nigeria at 136,000 b/d, Kazakstan at 89,000 b/d and Angola at 72,000 b/d, according to the data.

Russia -- which co-chairs the monitoring committee with Saudi Arabia and is the largest non-OPEC producer in the pact -- was also in excess of its cap, by 55,000 b/d.

Under the terms of the deal, any overproduction in May and June would need to be made up with extra cuts in July, August and September.

The agreement called for 9.7 million b/d of collective cuts from May-July, 7.7 million b/d of cuts from August through the end of 2020, and then 5.8 million b/d for all of 2021 through April 2022.

Excess production

Source: OPEC+ document seen by S&P Global Platts