World oil production increased by 0.51%, or 520,000 barrels per day (bpd), to around 102.5 million bpd in May as Brazilian ethanol output surged seasonally, according to the International Energy Agency’s (IEA) latest report on Wednesday.
According to the Oil Market Report for May, crude oil production by the Organization of Petroleum Exporting Countries (OPEC) rose by 120,000 bpd to about 27.22 million bpd.
Combined with condensates and oil from non-conventional sources, the group’s total oil production reached approximately 32.77 million bpd over the same period.
Daily oil production in non-OPEC countries also increased by 380,000 bpd in May to an estimated 69.71 million bpd.
‘For the year as a whole, production increases by 690,000 bpd, led by non-OPEC+ gains of 1.4 million bpd. OPEC+ supply falls by 740,000 bpd if voluntary cuts are maintained,’ the IEA said.
In 2025, global supply is forecast to rise by 1.8 million bpd, as non-OPEC+ output increases by 1.5 million bpd,’ the report added.
– IEA lowers demand growth projection
According to the report, as global oil demand growth continues to slow, it is set to rise by 960,000 bpd this year to around 103.2 million bpd, 100,000 bpd less than projected in last month’s report.
‘Weak OECD deliveries pushed global demand into a narrow year-on-year contraction in March,’ the report explained.
Demand in OECD countries is expected to decrease by 200,000 bpd this year, reaching 45.5 million bpd, while non-OECD demand is anticipated to rise by 1.1 million bpd to 57.7 million bpd.
In 2025, global oil demand is projected to reach 104.2 million bpd, with the pace of growth marginally surpassing 2024 at 1 million bpd.
‘Subpar growth of 1 million bpd in 2025 is held back by a muted economy and accelerating clean energy technology deployment,’ the report said.
