OPEC production rises in May as Saudi increases output

Crude oil output by Organization of Petroleum Exporting Countries (OPEC) members rose 35,000 barrels per day (bpd) to average 31.85 million bpd in May, as compared to the previous month, according to OPEC’s latest monthly oil report.

The increase was driven by a rise in production mainly in Saudi Arabia, Algeria and Iraq, which offset decreased crude oil production in Nigeria, Venezuela and Libya.

According to secondary sources, Saudi Arabia’s output rose 85,500 bpd in May to average 9.987 million bpd last month.

However, the Kingdom’s direct communication showed an increase by 161,400 bpd in May to 10.03 million bpd.

Nigeria saw the biggest decline in output, falling 53,500 bpd to 1.711 million bpd, according to secondary sources.

For 2018, OPEC’s NGLs and non-conventional liquids production is forecast to grow by 120,000 bpd to average 6.35 million bpd, indicating a downward revision by 60,000 bpd, the report said.

The cartel also revised upwards its estimates on non-OPEC supply in 2018, by 130,000 bpd to 59.75 million bpd – representing a year-on-year growth of 1.86 million bpd.

“Upward revisions were made for Q1 2018 in the OECD, particularly the US and Canada, and also in the forecast of Q2 2018 in the OECD, FSU and China, due to higher-than-expected output,” the report said.

Meanwhile, OPEC kept its projections for 2018 global oil demand unchanged from its April report, estimating demand to average 98.85 million bpd this year.