The US Energy Information Administration said the global surplus in crude oil production capacity in May was less than half of media in the same month last year due to Western sanctions against Russia for the invasion of Ukraine.
Estimates from the Energy Information Administration indicate that overcapacity has decreased by 80% in non-OPEC countries since May from the previous year.
While OPEC’s surplus fell to 3.0 million barrels a day by May 2022 from 5.4 million barrels a day a year ago, according to Reuters.
The EIA also said that producers in non-OPEC countries had around 280,000 barrels per day of spare capacity in May, a steep drop from the 1.4 million barrels per day surplus a year earlier.
The administration said 60% of this percentage came from Russia alone.
The EIA report did not say whether those numbers included Russian oil shipments in China and India in May.
Recent data from the two Asian countries showed that Russia replaced Saudi Arabia as China’s top supplier and became India’s second largest supplier in May as refineries in both countries obtained supplies at discounted prices from Moscow despite sanctions.
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