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Market Chatter: OPEC Oil Production Jumps in June on Higher Gulf Output

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OPEC oil production rebounded in June from a two-decade low as Gulf producers began restoring supplies interrupted by the Middle East conflict and the de facto closure of the Strait of Hormuz, according to Reuters survey data released Friday.

Production by the 11-member producer cartel rose by 3.3 million barrels per day from May to 19.43 million b/d. The figures exclude the UAE, which departed the organization effective May 1.

The increase followed a steep decline in May, when output fell to its lowest monthly level since at least 2000 and dropped below production levels recorded during the demand collapse during the Covid-19 pandemic.

Production gains were led by Kuwait and Iran, the latter benefiting from the US decision to lift its blockade. Saudi Arabia, Nigeria and Libya also hiked output. Though seven members of the broader OPEC+ alliance had previously committed to raising production in June, the conflict had rendered those targets unattainable until now.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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