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The total global oil production in May amounted to 89.89 million barrels per day (bpd), marking a daily decrease of 10.04 million bpd compared to April, according to figures released by the Organisation of the Petroleum Exporting Countries (Opec).
The global decline in oil production was the result of an agreement signed between Opec and other producers to cut production, to maintain a balance between supply and demand and protect the interests of both producers and consumers, it stated.
Last month, oil prices surged after dropping in the first quarter to its lowest levels since 2003, which encouraged the Opec + countries to cut production further, especially with the decline of oil demand by major consumer countries, said the report.
The production of Opec members declined by 6.3 million barrels per day in May while other cuts were made by Russia, the US, Kazakhstan, Oman, Canada, Azerbaijan, Norway and Mexico, as per Opec’s monthly report on oil market activity.
The organisation has estimated a decline in global oil production by 9.1 million barrels per day in 2020, noting that average global oil production this year will reach 90.6 million barrels per day, according to preliminary figures.
In 2019, global oil demand reached 99.67 million barrels per day, according to OPEC’s figures.
Oil prices rose on Wednesday after inventory data showed a big drop in U.S. crude stocks although gains were capped by concerns over fuel demand with mounting global COVID-19 cases.
The Gulf Today
Oil rose to above $42 a barrel on Friday, adding to gains in the previous session, after OPEC producers and allies promised to meet supply cuts and signs of demand, hit by the coronavirus crisis, rec
Major oil producers sharply cut back output in May, data showed on Wednesday, as part of a concerted effort to prop up prices that have fallen dramatically in the wake of the global coronavirus pande
Opec forecast that global oil demand will shrink by 9.1 million barrels per day to reach 90.06m bpd in 2020 but anticipates a recovery in demand during the second half of the year.
Opec on Monday forecast lower demand for its crude next year as rivals pump more and said top oil exporter Saudi Arabia, eager to avoid a return of oversupply, had cut production.
In a mon
Times of Oman