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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 pandemic.
In the latest monthly report by the Organization of Petroleum Exporting Countries (OPEC), data showed that the group’s 13 member states throttled output by 6.2 million barrels per day (bpd) last month.
In April, OPEC and key allies such as Russia — grouped together under the OPEC+ banner — had pledged to cut output by 9.7 million bpd from May 1 until the end of June.
In a further crisis meeting earlier this month, the oil-producing nations subsequently agreed to extend those cuts through July. OPEC itself does not officially publish exact output figures in its regular monthly bulletins, but instead cites data compiled by so-called secondary sources. And according to those statistics, Saudi Arabia bore the brunt of the cuts, curbing its output by 3.16 million bpd alone.
The UAE cut production by 1.364 million bpd and Kuwait axed 921,000 bpd. The action was deemed necessary after oil prices plummeted in the face of falling demand as countries around the world imposed strict lockdowns to stop the spread of the new coronavirus.
In its latest monthly report, OPEC estimated that 10 non-member states had also cut production by 2.95 million bpd in May, bringing the overall volume of cuts to 9.2 million bpd.
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
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 Organisat
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