OPEC Cuts 2026 Demand Target as Combined Supply Dips


   
   SECAUCUS, NJ (DTN) -- The broader OPEC+ alliance cut back its oil 
manufacturing in May, pumping 190,000 fewer bpd than they did in April, 
bringing their total daily output down to a 33.13 million bpd average, the June 
report of Organization of the Petroleum Exporting Countries showed Thursday 
(6/11).

   The combined crude oil output contraction from nations that form OPEC+'s 
Declaration of Cooperation coalition reflects a 180,000 bpd monthly decrease 
from core OPEC members and a minor 10,000 bpd slide from participating non-OPEC 
allies.

   Reflecting evolving macroeconomic data, OPEC trimmed its 2026 global oil 
demand growth projection down by 200,000 bpd to land at a 1.0 million bpd 
expansion. Developing nations outside the OECD remain the key engine, forecast 
to pull consumption higher by 0.9 million bpd.

   Supplies coming from independent non-DoC producers are still on track to 
expand by 0.6 million bpd this year, anchored securely by the Americas. Strong 
operational output across the U.S., Brazil, Canada, and Argentina is expected 
to dominate near-term global supply additions.

   Price indicators diverged across key operational benchmarks during the 
month. The official OPEC Reference Basket price rallied by $5.49 in May to 
average $114.55 per bbl, whereas NYMEX WTI front-month futures edged down by 
$0.16 to hit a $98.51 per bbl average.

   Looking further out, the alliance revised its 2027 global oil demand growth 
target upward by 200,000 bpd to an average of 1.7 million bpd. That stronger 
recovery track is expected to be led by non-OECD regions, which are forecast to 
expand by 1.5 million bpd.




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