OPEC said on Tuesday that world demand for its oil would be higher than expected this year as supply growth from rivals including U.S. shale producers slows, pointing to a tighter market if the exporter group refrains from raising output.
But the Organization of the Petroleum Exporting Countries, in a monthly report, said its output fell slightly in April as U.S. sanctions on Iran added to the impact of an OPEC-led supply-cutting pact.
OPEC, Russia and other non-member producers are reducing output by 1.2 million barrels per day from Jan. 1 for six months. The producers meet on June 25-26 to decide whether to extend the pact.
Now watch: U.S. Secretary of State on oil prices.