OPEC Oil Output Falls in May, Adding to Pressure on Cartel

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The data comes after OPEC and allies agreed to a higher-than-expected increase in output to beat rising prices.

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The fall came as protesters closed major oil refineries in OPEC member Libya, where production fell by 186,000 barrels a day. Production fell on other members as well: Nigeria rose by 45,000 barrels a day and Iraq by 21,000 barrels a day. The decline outweighed a more modest increase in supplies from Saudi Arabia, the United Arab Emirates and Kuwait.

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Earlier this month, the cartel and a group of affiliated producers led by Russia agreed to a higher-than-expected increase in oil production in an effort to combat rising oil prices. The group said it would increase production by 6,48,000 barrels a day in July and August, but that pledge was met with skepticism by oil market analysts, who said most members of the cartel were already pumping at full capacity. Were.

Brent crude, the international oil benchmark, rose 0.9% to $123.33 a barrel on Tuesday, nearing its highest level in three months and notching a multi-year high in March.

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The cartel also said global oil production would grow lower than expected this year, adding to tensions in a tight market. OPEC this year slashed its output growth forecast among non-OPEC countries by 250,000 barrels per day to 2.1 million barrels per day.

The decrease has been due to the continued struggle for Russian oil producers to find customers for their crude oil since Moscow’s invasion of Ukraine. OPEC said Russian production this year is expected to total 10.6 million barrels a day, down 250,000 barrels a day from last month.

It is the third month in a row that OPEC has lowered its Russian oil-supply forecast for the year by 1.1 million barrels a day, falling short of Russia’s expected output.

OPEC kept its demand forecast stable. The cartel expects oil demand to increase by 3.4 million barrels per day this year.

write to Will Horner at [email protected]

Credit: www.wsj.com /

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