IEA report finds supply drop but demand rise

The International Energy Agency’s monthly Oil Market Report said that OPEC oil supply fell by 55,000 barrels per day to 29.26 million barrels per day in May due to lower output from the United Arab Emirates, Venezuela, and Iraq.

The report also showed however, that world supply advanced by 260,000 barrels per day in May to 84.6 million barrels per day.

The 10 quota-bound OPEC members pumped 27.6 million barrels per day for the month, 100,000 barrels per day over OPEC’s production goal.

The IEA’s report also showed that demand growth slowed in China and Europe in May, but demand growth was up in North America.

In other news related to the oil sector, the president of OPEC reiterated that there is no shortage in crude oil supplies and that high prices are the fault of speculators.

Despite that reassurance, the market continues to manifest investor fears about supply interruptions due to bad weather conditions as the first named tropical storm of the season has prompted several companies to evacuate non-essential employees from offshore rigs in the Gulf of Mexico.

This news sent West Texas Intermediate July contracts on the New York Mercantile Exchange down 7 cents to $54.62 per barrel while in London July delivery IPE Brent rose 6 cents to $53.88.

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