OPEC output falls as Saudi Arabia trims oil supply
Saudi Arabia’s crude oil production declined by 76,000 barrels per day (bpd) to average 9.69 million barrels per day (mbd) in May 2019, the Organization of Petroleum Exporting Countries (OPEC) said in its monthly oil market report on Thursday, citing secondary sources.
The direct communication figures showed that the Kingdom had reduced its oil production by 136,000 bpd to 9.67 mbd last month.
Total OPEC-14 preliminary crude oil production averaged 29.88 mbd, lower by 236,000 bpd month-on-month. Saudi Arabia, Nigeria, Venezuela and Iran reported declines, as Iraq, Angola and Gabon saw production rising.
Brent fell 2.9 percent month-on-month (MoM) to average $70.30 a barrel in May, while WTI dropped 4.7 percent MoM to average $60.87 per barrel.
Meanwhile, world oil demand is forecast to grow by 1.41 mbd, lower than its last month’s assessment by 0.07 mbd.
“The slowdown in the global economy in H1 2019 will further be challenged in H2 2019, mainly by mounting trade disputes, with the impact on oil demand growth remaining uncertain,” OPEC said.
The upcoming OPEC and non-OPEC ministerial meetings will consider these developments, in order to ensure continued market stability, it noted.