Opec production increased by a sluggish 110,000 b/d in April, driven by a bounce back in Iraq as field maintenance was wrapped up. Output from the ‘Opec 10’ cohort subject to production cuts was a massive 900,000 b/d below quota, and any link between the monthly quota increases and actual output gains has long since disappeared.
Many Opec producers have hit production capacity constraints, and Iraq is now butting up against midstream export capacity constraints which could hamper growth in the coming months (MEES, 6 May). Even Kuwait is creeping closer to its production capacity limits. (CONTINUED - 1002 WORDS)