pec oil output sank to a new five-year low in June as a rise in Saudi supply did not offset losses in Iran and Venezuela due to US sanctions and other outages elsewhere in the group, a Reuters survey found.
The Organization of the Petroleum Exporting Countries pumped 29.60 million bpd last month, the survey showed, down 170,000 bpd from May’s revised figure and the lowest Opec total since 2014.
The Reuters survey suggests that even though Saudi Arabia is raising output following pressure from US President Donald Trump to bring down prices, the kingdom is still voluntarily pumping less than an Opec-led supply deal allows it to.
Despite lower supplies, crude oil has fallen from a six-month high above $75 a barrel in April to below $63 on Friday, pressured by concern about slowing economic growth.
“The decision of Opec+ at the beginning of the week to extend its production cuts has done nothing to change this,” Carsten Fritsch, analyst at Commerzbank, said of this week’s drop in prices.
“A series of disappointing economic data from the US, China and Europe has sparked new concerns about demand.”