OPEC Crude Production Slumps as Voluntary Cuts Bite
A person pumps gasoline into a car at an ARCO gasoline station in Los Angeles. Photo: caroline brehman/Shutterstock By Will Horner June 13, 2023 7:56 am ET The Organization of the Petroleum Exporting Countries accelerated its efforts to tighten the oil market in May, as a handful of the group’s largest members sharply slashed output as planned. In its monthly market report released Tuesday, OPEC said output from its 13 members slumped by 464,000 barrels a day to 28.07 million barrels a day, citing data sourced from independent data providers. The drop suggests the group’s members have largely made good on a pledge announced in April to reduce their collective output. The group and a collection of Russia-led allied nations known collectively as OPEC+ pledged to reduce oil productio
A person pumps gasoline into a car at an ARCO gasoline station in Los Angeles.
Photo: caroline brehman/Shutterstock
By
The Organization of the Petroleum Exporting Countries accelerated its efforts to tighten the oil market in May, as a handful of the group’s largest members sharply slashed output as planned.
In its monthly market report released Tuesday, OPEC said output from its 13 members slumped by 464,000 barrels a day to 28.07 million barrels a day, citing data sourced from independent data providers.
The drop suggests the group’s members have largely made good on a pledge announced in April to reduce their collective output. The group and a collection of Russia-led allied nations known collectively as OPEC+ pledged to reduce oil production by around 1.1 million barrels a day, while Russia said it would extend an already announced 500,000 barrel-a-day production cut.
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Subscribe NowSeparately, the oil producers group left its forecasts for global oil supply and demand largely unchanged. That means the group continues to expect a sharp run-up in demand later this year that supplies will struggle to keep pace with, raising the prospect of higher oil prices.
OPEC expects global oil demand will grow by 2.3 million barrels a day this year to 101.91 million barrels a day, while oil supplies from non-OPEC nations will grow by 1.4 million barrels a day to 72.61 million barrels a day.
The group also made no major changes to its forecasts for global economic growth, which it continues to see at 2.6% this year. China’s economy will grow by 5.2% in 2023, while the eurozone economy is expected to grow by 0.8%, in line with earlier forecasts.
OPEC expects the U.S. economy to grow by 1.3% this year, up from 1.2% last month.
Write to Will Horner at [email protected]
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