OPEC released its Monthly Oil Market Report Tuesday, noting that Q2 oil demand expectations were reduced for the cartel, as China lockdowns impacted use; however, annual demand growth of 3.4mb/d was "broadly unchanged" as 2h demand expectations increased.
Perhaps more importantly, supply from the cartel fell month over month in May by 176kb/d, with supply from the "core group of 10" rising only 35kb/d, versus a quota increase of 277kb/d.
June quotas are set to increase 277kb/d for the core group; however, collapsing production in Libya threatens to reduce supplies for the broader OPEC cartel (TTE) (OTCQX:REPYY).
While Saudi (ARMCO) and the UAE saw production rise in May, Saudi growth was ~50kb/d below quota; Nigerian production (XOM) (SHEL) saw the country miss quota by a full 491kb/d in May.