OPEC missing production targets putting a damper on Biden’s request for more oil

President Joe Biden’s upcoming trip to the Middle East was expected to come with a side of requests for more oil to alleviate the massive price of gas in the United States.

However, according to a report by Breitbart News, recent OPEC oil output figures suggest that the cartel’s members are falling short of their production expectations.

This puts Biden’s impending trip to Saudi Arabia to request more oil imports in jeopardy, according to some experts.

“OPEC+ missed their #oil output target even more in May. Short thread with charts,” Bison Interests tweeted.

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The hedge fund also pointed out that monthly and barrels per day. “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.

The hedge fund also stated that Russian manufacturing is currently growing significantly, tweeting that it was “Worth noting.”

CNBC reports

According to analysts, OPEC+ is not achieving production targets and has limited spare capacity to boost supply, as reported by CNBC:

The alliance on [June 2] said they would increase production by 648,000 barrels per day in July and August to bring output cuts to an end earlier than previously agreed.

OPEC and its allies decided to take nearly 10 million barrels off the oil market in 2020 when Covid first hit and demand evaporated.

OPEC+ has “kind of broken down,” the lead analyst of an oil research firm said after oil prices rose despite the alliance announcing that it would increase supply more quickly.

 

CNBC interviewed Paul Sankey of Sankey Research, saying “The whole system of OPEC has kind of broken down right now. Saudi has to make a choice — do we let the price go higher while maintaining a super emergency, super crisis level of spare capacity?”

“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 said.

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