OPEC’s crude oil supply rises to 31.33mbpd



The supply of crude oil by Organisation of Petroleum Exporting Countries (OPEC) in May edged up 50, 000 barrels ber day (bpd) to 31.33 mbpd, the highest since August 2012, he International Energy Agency, has said.

According to the agency, Saudi Arabia, Iraq and the UAE pumped at record monthly rates to keep output over 1 mb/d above OPEC’s official supply target for a third month running. Oil ministers agreed to maintain that target at their 5 June meeting.

It added that the estimate of global demand growth has been revised up to 1.7 mbpd for 1Q15 and 1.4 mbpd for 2015 as a whole. Momentum is expected to ease somewhat in 2H15, assuming a return to normal weather conditions and given a recent partial recovery in oil prices.

IEA said that global refinery crude runs reached an estimated 77.9 mb/d in April, 0.3 mb/d lower than March, and 1.7 mbpd above a year earlier. Delayed new capacity of 1.5 mb/d in non-OECD regions has lifted product cracks and OECD refining utilisation rates, and caused backwardation to re-appear in oil products markets.

It said that OECD industry oil stocks built by a steep 38.0 mb in April, to stand 147 mb above average levels, as refined-product stocks moved to their widest surplus in over four years. Preliminary data indicate that OECD inventories added a further 12.6 mb in May although US crude stocks posted their first draw in nine months.

Analyzing further, the global energy watch dog stated: “Short-term imbalances in the global refining industry appear to be supporting oil prices – whether directly for products or more indirectly for crude – in the face of a lingering supply overhang, the latest available data suggest.

Receive News Alerts on Whatsapp: +2348136370421

No comments yet