On Wednesday, the Organization of Petroleum Exporting Countries (OPEC)’s Monthly Oil Market Report for June stated that in May, global production for liquids noticeably down due to the impact of coronavirus pandemic.
Last month, the global liquids production plummeted by 10.04 million bpd to an average of 89.89 million bpd.
From OPEC itself, crude production plunged by 6.3 million bpd from April level to an average of 24.19 million bpd. The group’s share of crude output globally dipped by 3.6% to 26.9% month-on-month.
Saudi Arabia, the UAE, and Kuwait posted the biggest production decrease among the group, more than its output cut quota decided in the OPEC and allies (OPEC+) pact.
In April, Saudi cut crude output by 3.16 million bpd to 8.48 million bpd, the UAE by 1.36 million bpd to 2.47 million bpd, and Kuwait by 921,000 bpd to 2.2 million bpd.
Meanwhile, the non-OPEC production including OPEC non-gas liquids (NGLs) and non-conventional liquids, were likely to fall by 3.74 million bpd month-on-month to an average of 65.69 million bpd or 3.99 million bpd year-on-year.
OPEC estimated this year’s global oil demand to nosedived by 9.07 million year-on-year to 90.59 million bpd. The forecast for demand for OPEC crude was also lowered by 0.7 million bpd month-on-month to 23.6 million bpd, or 5.8 million bpd year-on-year.
Coronavirus-related lockdowns in various regions globally hurt the demand for transportation fuels, particularly in the US, Europe, India, and the Middle East.
