Russia’s largest oil producer Rosneft accounted for most of the cuts, with a month-on-month reduction of 2.9 percent in May, while domestic output at Russia’s No.2 oil producer Lukoil edged up 0.7 percent last and Gazprom Neft boosted its output by 4.7 percent. OPEC and other large oil-producing countries led by Russia agreed to curb output by a combined 1.2 million bpd for six months from Jan. 1, in order to balance the global oil market.
Of this, Russia pledged to cut its production by 228,000 bpd from the deal baseline of the October 2018 level, to 11.18 million bpd. OPEC and Russia are excepted to gather in Vienna later this month or in early July to discuss what to do in the second half of the year. Top oil exporter Saudi Arabia has raised production in May, a Reuters survey found, but not by enough to compensate for lower Iranian exports that collapsed after the United States tightened the screw on Tehran.
The 14-member OPEC pumped 30.17 million barrels per day (bpd) in May, down 60,000 bpd from April and the lowest OPEC total since 2015, the Reuters survey showed.
Oil prices slumped by more than 3% and posted their biggest monthly drop in six months on Friday after U.S. President Donald Trump stoked tensions by threatening tariffs on Mexico, a key U.S. trade partner and major crude oil supplier.