Output stays low as tricky June meeting looms

摘要

Opec production remained close to a three-year low in May, ahead of a meeting that is widely expected to host discussions on boosting output. Opec production stood at 31.76mn b/d last month, up marginally on the near three-year low of 31.75mn b/d recorded in April. Compliance by members subject to production cuts slipped to 166pc from the record 181pc in April, mainly as Saudi Arabia and Algeria boosted output (see table). But involuntary production cuts elsewhere partly offset these rises. Nigerian export streams Bonny Light and Forcados were disrupted in May, while Venezuela’s unrelenting financial crisis further heaped pressure on its oil sector. A shortfall in the amount of crude that state-owned PdV has available to export this month could prompt it to declare force majeure on some of its June supply contracts.