OPEC+ to maintain voluntary output cuts on rising oil inventories: Report

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Analysts expected the OPEC+ alliance to maintain plans of voluntary output cuts during the coming June 2 meeting, with global oil inventories rising due to weak fuel demand and as refineries undergo maintenance work, Reuters reported, citing sources in the know.

An OPEC+ delegate said that, despite the previous output cut, the Organization for Economic Cooperation and Development’s (OECD) oil inventories rose in March and April. This could enhance the possibility of extending the voluntary cut until stocks decline, he added.

Another OPEC+ delegate underlined that the market is receiving good supplies albeit demand is slowing, which is a source of concern. He also noted that OPEC’s outlook for supply and demand indicated large stock offloads during the second half of the year.

This came after the International Energy Agency said, citing data from the energy data analysis company Kairos, that crude inventories in non-OECD countries rose in March for the first time since November by two million barrels, then by 48.5 million barrels in April.