Global liquids production in May decreased significantly by 10.04 million barrels per day (BPD) to an average of 89.89 million BPD, the Organization of Petroleum Exporting Countries (OPEC) said in its report on Wednesday.
The global decline in oil production was the result of an agreement signed between OPEC and other producers to cut production, to maintain a balance between supply and demand, and protect the interests of both producers and consumers.
In May, OPEC crude oil production decreased by 6.3 million BPD month-over-month to average 24.19 million BPD, according to secondary sources quoting from OPEC’s Monthly Oil Market Report for June.
Oil prices surged after dropping in the first quarter to its lowest levels since 2003, which encouraged the Organisation of the Petroleum Exporting Countries Plus, OPEC, to cut production further, especially with the decline of oil demand by major consumer countries.
The production of OPEC members declined by 6.3 million barrels per day in May while other cuts were made by Russia, the US, Kazakhstan, Oman, Canada, Azerbaijan, Norway, and Mexico, as per OPEC’s monthly report on oil market activity.
OPEC estimates a decline in global oil production by 9.1 million barrels per day in 2020, noting that average global oil production this year will reach 90.6 million barrels per day, according to preliminary figures.
In 2019, global oil demand reached 99.67 million barrels per day, according to OPEC’s figures. Global demand for crude oil (including biofuels) in 2019 amounted to 100.1 million barrels per day.