The market is keeping a close eye on OPEC, which is unwinding output cuts at a faster rate than originally planned to punish over-producers. OPEC+, which includes members like Russia, has vowed to increase output by 411,000 bpd for May, June and July.
May's output from OPEC, however, rose by less than expected, a Reuters survey found, as Iraq made cuts to compensate for pumping above targets and Saudi Arabia and the United Arab Emirates made smaller hikes than permitted.
In total, OPEC pumped 26.75 million bpd last month, up 150,000 bpd from April's level. The largest increase came from Saudi Arabia, which boosted output by 130,000 bpd.
Eight OPEC+ members, five of which are members of OPEC, were to raise output by 310,000 bpd. The five members include Algeria, Iraq, Kuwait, Saudi Arabia, and the UAE. The actual increase by the five was 180,000 bpd.
Surveys around OPEC production can vary. Reuters' April data, which was provided by OPEC's secondary sources, showed the group pumping close to quotas, while other estimates, including from the International Energy Agency, indicated the group is producing significantly more.
A little further downstream, California's fuel imports rose to the highest level in four years in May amid a slew of refinery outages, Shariq Khan and Nicole Jao reported. The shortage of fuel has opened up unusual trade routes, including from the Bahamas, which shipped a record 38,000 bpd to the state. Fuel shipments from the Bahamas averaged just 6,000 bpd last year.
The jump in imports could offer a window into California's fuel markets in the coming years, as Phillips 66 and Valero close two major refineries in the state amid growing regulatory and cost pressures. The state is expected to become more dependent on imports, which could raise prices at the pump.
Finally, solar company Sunnova Energy on Sunday said it had filed for Chapter 11 bankruptcy, as it buckled under the pressure of mounting debt and weak demand. Sunnova is the second residential solar company to file for bankruptcy this month, after privately held Solar Mosaic filed for bankruptcy protection.
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