OPEC+ Decreased Oil Exports In The Backdrop Of The Execution Of The Transaction To Reduce Production
OPEC+ countries reduced oil exports in may on the back of a deal to reduce production, according to Bloomberg, citing Clay Seigle, the Managing Director of the analytical company Vortexa Ltd.
Thus, Saudi Arabia reduced deliveries by 17%, to 8 million b/d in the first 10 days of may compared to April. According to the expert, the decline will continue further if the deal to reduce production is met. Russian shipments by sea fell to 2.8 million b/d in the first 12 days of may from 3.8 million b/d in April.
At the same time, Iraq's exports remained at about the same level - 3.5 million b/d against 3.7 million b/d in April. In General, according to Vortexa, the commitment to the deal can be tested as demand for oil recovers, which will allow producers to increase supplies.
The decline in oil exports is as important for stabilizing the situation on the oil market as the reduction in production. "To stabilize the situation, it is necessary to reduce the amount of oil on the world market, that is, to reduce supplies to the foreign market. This is not always the same as reducing production, because many countries have accumulated huge reserves of raw materials that allow them to maintain the pre-crisis level of exports (and, therefore, their share in the world market) even with a formal decline in production.