The third producer exempted from the cuts, Libya, also raised its crude oil production in May compared to April, when output was lower due to several days of force majeure at one of the oil export terminals.
Oil production in Kazakhstan in the first five months of 2021 amounted to 35.5 mln tonnes, or 99.3% of the previously planned volume, Minister of Energy Nurlan Nogayev said on Thursday.
Oil extended declines as rising U.S. fuel stockpiles punctured the optimism on demand that drove crude to the highest since 2018 this week.
India’s fuel demand slumped in May to its lowest since August last year with a second COVID-19 wave stalling mobility and muting economic activity in the world’s third largest oil consumer.
China’s privately-owned Shenghong Petrochemical plans to start test runs at its 320,000-barrels-per-day (bpd) crude unit in August or September, a company official told Reuters.
The price of crude oil futures is back up above 70.
Crude throughputs at China’s independent refineries in eastern Shandong province fell 1.3% month on month to 2.38 million b/d — or 10.05 million mt — in May, marking a 14-month low amid heavy maintenance despite refining margins having risen.
Oil rose to the highest settle in over two years, drawing support from higher-than-forecast U.S. inflation data and a strong demand outlook.
Iranian exporters aim to increase LPG exports to full capacity, if the Biden administration lifts sanctions that limited shipments from the country’s petrochemical plants and gas refineries, adding to healthy Middle East supply, which could drive up freight.
OPEC’s latest report reaffirms that there will be a substantial gap in the market for the producers to fill.