Global oil inventories are almost at the five-year average targeted by OPEC-led production cut deal, according to the latest figures by the group.
Total OECD commercial oil stocks fell to 9 million barrels above the latest five-year average, down by 12.7 million barrels month-on-month, to stand at 2.83 billion barrels, which was 204 million barrels lower than the same time one year ago, OPEC said in its Monthly Oil Report – May 2018.
OPEC aims to bring inventories in industrialised countries down to their five-year average. The oil exporting group and participants in the pact will meet in June to identify that inventory target to gauge the success of the deal, OPEC officials have said. Oil ministers have recently since said other metrics should be considered such as oil industry investment.
“The oil market was underpinned in April by renewed geopolitical issues, tightening product inventories and robust global demand,” OPEC said in its report.
The deal between OPEC, Russia and other non-OPEC producers has helped oil prices rise 40 percent since it took effect. Oil reached $78.28 a barrel on Monday, the highest since November 2014, after the OPEC report was published.
In April, OPEC’s 14-members’ crude oil production rose by 12,000 bpd, to average 31.93 million bpd, according to secondary sources.
Higher production in Saudi Arabia and Algeria was partially offset by decreased crude oil production, mainly in Venezuela, Gabon and Nigeria.
The largest OPEC producer Saudi Arabia’s crude oil production was 9.97 million per day during April. Venezuela’s production fell by 417,000 barrels per day to average 1.44 million daily in the same time period.