• 3 minutes e-car sales collapse
  • 6 minutes America Is Exceptional in Its Political Divide
  • 11 minutes Perovskites, a ‘dirt cheap’ alternative to silicon, just got a lot more efficient
  • 3 days The United States produced more crude oil than any nation, at any time.
  • 9 days e-truck insanity
  • 4 days How Far Have We Really Gotten With Alternative Energy
  • 8 days Oil Stocks, Market Direction, Bitcoin, Minerals, Gold, Silver - Technical Trading <--- Chris Vermeulen & Gareth Soloway weigh in
  • 7 days James Corbett Interviews Irina Slav of OILPRICE.COM - "Burn, Hollywood, Burn!" - The Corbett Report
  • 7 days The European Union is exceptional in its political divide. Examples are apparent in Hungary, Slovakia, Sweden, Netherlands, Belarus, Ireland, etc.
  • 9 days Biden's $2 trillion Plan for Insfrastructure and Jobs
  • 9 days "What’s In Store For Europe In 2023?" By the CIA (aka RFE/RL as a ruse to deceive readers)
  • 12 days Bankruptcy in the Industry
Charles Kennedy

Charles Kennedy

Charles is a writer for Oilprice.com

More Info

Premium Content

OPEC: The Oil Market Is Less Tight Than A Year Ago

  • OPEC’s much-anticipated monthly report suggested that the oil market is less tight than it was this time last year.
  • The group emphasized that OECD commercial inventories had been building, which could have been a factor in the OPEC+ decision to cut production.
  • OPEC acknowledged that U.S. driving season is set to boost demand for transportation fuels but monetary tightening measures may offset that somewhat.
oil market

Commercial oil stockpiles have been rising in recent months in the developed economies in the OECD, pointing to a less tight market than at this time last year, OPEC said in its monthly report on Thursday, less than two weeks after major OPEC+ producers announced additional production cuts until the end of 2023.  

“On inventories, OECD commercial inventories have been building in recent months, and product balances are less tight than seen at the same time a year ago,” OPEC said in its closely-watched Monthly Oil Market Report (MOMR) today.  

The building of inventories could be one plausible backdated reason for the decision of some of the biggest OPEC+ producers to remove another 1.16 million bpd from the market between May and December 2023.

The biggest OPEC producers in the Middle East and several other members of the OPEC+ pact announced early this month a total of 1.16 million bpd of fresh production cuts, which add to Russia’s 500,000 bpd cut, which was extended until the end of the year.

Saudi Arabia, OPEC’s de facto leader and top global crude exporter, will cut 500,000 bpd and said that the move was “a precautionary measure aimed at supporting the stability of the oil market.”

In its report today, OPEC said, referring to the less tight product balances, that “Given these uncertainties surrounding current oil market dynamics, several countries in the Declaration of Cooperation (DoC) have announced additional voluntary adjustments as of May 2023 and until the end of the year, and this was in support of the ongoing relentless and determined DoC effort to support the stability of the oil market.” 

While increased mobility during the U.S. driving season is set to boost demand for transportation fuels, “any weakening in the economy on the back of ongoing monetary tightening measures by the US Fed may offset some of this seasonal dynamic,” OPEC said.  

By Charles Kennedy for Oilprice.com


More Top Reads From Oilprice.com:

Download The Free Oilprice App Today

Back to homepage

Leave a comment

Leave a comment

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News