OPEC Oil Output Jumps 3.3 Million Bpd in June, Still Below Pre-Crisis Levels
OPEC's oil production surged by 3.3 million barrels per day in June as Gulf producers restored output, but the cartel remains far below pre-crisis levels due to ongoing Strait of Hormuz disruptions.
OPEC's oil production rebounded sharply in June, rising by 3.3 million barrels per day (bpd) from May, as Gulf producers began bringing shut-in barrels back online after months of war-induced disruptions. However, despite the headline jump, the cartel is still pumping far below levels seen before the Strait of Hormuz crisis upended Middle East oil flows.
According to Reuters' monthly survey, the 11 OPEC members produced 19.43 million bpd in June, up from 16.13 million bpd in May. The increase was driven mainly by Saudi Arabia, Kuwait, and the United Arab Emirates, which restored some of the output lost during the conflict. Yet total production remains roughly 4 million bpd below pre-crisis levels, highlighting the lingering impact of geopolitical tensions on global supply. For energy traders, the gap between actual output and potential capacity is a key metric to watch, as it influences the Brent-WTI spread and refinery crack spreads. Live fuel prices and charts on NowPrice show how the market is reacting to the gradual recovery.
The recovery in OPEC supply comes as demand concerns persist, with China's economic slowdown and high interest rates weighing on the outlook. The cartel's next meeting will be closely watched for any adjustments to production targets. Traders should also monitor the pace of Gulf output restoration and any further disruptions in the Strait of Hormuz, which remains a critical chokepoint for global oil shipments. The contango structure in the futures market suggests ample near-term supply, but backwardation could return if geopolitical risks escalate again.