US Chevron announced on May 5 its entry into the Maltese energy sector to explore for natural gas and oil, marking a strategic expansion into a territory situated between established Mediterranean producers Libya, Italy, and Tunisia. The move aims to unlock potential in a nation that currently lacks domestic production, according to Reuters.
Eni resumed receiving Venezuelan crude shipments in April as a form of payment for natural gas produced in the country, a move to gradually recover outstanding debts owed by the government, according to Reuters.
Global oil stocks are shrinking at a pace not seen in nearly eight years, with Goldman Sachs warning on May 4 that stocks could fall from 101 days of demand to 98 days by the end of May. The Days of Demand metric represents the number of days the world could continue to consume oil at current rates using only existing inventories if all production were to stop.
Oil prices rose by around 6% on Monday after Iran reportedly targeted several vessels in the Strait of Hormuz and a fire broke out at a UAE oil port, according to Reuters.
The UAE has announced its departure from the Organization of Arab Petroleum Exporting Countries (OAPEC), Reuters reported, citing a statement from the intergovernmental alliance released on Sunday. OAPEC, founded in 1968 to strengthen cooperation among Arab oil exporters, does not set production policies for its members.
Seven OPEC+ countries, Saudi Arabia, Russia, Iraq, Kuwait, Kazakhstan, Algeria, and Oman, convened virtually on May 3 to assess global oil market conditions and outlook. The meeting resulted in a collective decision to implement a production adjustment of 188,000 barrels per day (bbl/d), effective June 2026, according to OPEC’s statement.
Venezuela’s crude oil exports rose by 14% month-on-month to around 1.23 million barrels per day (mmbbl/d) in April, marking the highest level recorded in more than seven years, according to shipping data and documents from state-owned PDVSA.
OPEC+ has reached a preliminary agreement to raise its oil production targets for June, according to sources familiar with the group’s deliberations, cited by Reuters. However, the planned increase is expected to have limited impact in practice as the ongoing US -Iran conflict continues to disrupt crude flows from the Gulf.
Iraq is moving forward with plans for the $5 billion Basra–Haditha crude oil pipeline, establishing a high-level commission to oversee development of the strategic project.
The Organization of the Petroleum Exporting Countries and allies (OPEC+) will maintain cooperation despite the United Arab Emirates’ (UAE) withdrawal, Russia’s Deputy Prime Minister Alexander Novak stated.
Novak emphasized that he does not foresee an oil price war following the UAE’s departure, pointing instead to the prevailing global oil supply deficit.
The United Arab Emirates’ (UAE) decision to exit OPEC and the wider OPEC+ alliance poses a significant upside risk to global oil supply over the medium term, Goldman Sachs, a leading global investment banking firm, reported. According to Reuters, the bank noted that while immediate impacts are limited by current geopolitical constraints, the move weakens the producer group’s control over global inventories and grants Abu Dhabi greater autonomy over future output levels.
