The month of May saw a daily decrease of 10.04 million barrels compared to April 2020, according to figures from the Organisation of the Petroleum Exporting Countries, OPEC. Total global oil production was at 89.89 million barrels per day in the past month.
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 2020, 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.
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