Market Outlook: Oil Stocks and Output High, Demand Low

Saudi Arabian oil production is currently over 10 million barrels per day.

Bunker prices couldn't seem to escape plummeting U.S. crude futures in May, with WTI dropping $19.63 for the month from $106.16, closing on the 31st at $83.53 per barrel.

Looking ahead to June, bunker buyers putting their faith in prices continuing to shadow crude won't be expecting to see any fuel price hikes in their immediate future.

U.S. crude oil stockpiles made a 10th consecutive week of gains, rising 2.21 million barrels to 384.7 million barrels, a 22-year high, and is expected to see another million barrels on that.

With Greece's anticipated exit from the Euro system and the slashing of Spanish credit ratings fueling fears they could follow suit, demand in Europe looks to be as down - as is consumer confidence.

Saudi Arabia doesn't want to see higher prices either, with Ali Naimi, their Minister of Petroleum and Mineral Resources saying in March that high oil prices were "bad news" and that it "would like to see a lower price."

Two months on and Khalid Al-Falih, CEO of the Saudi Arabian Oil Company (Saudi Aramco), has told Dow Jones that the Kingdom's daily production "changes day to day, but it's over 10 million barrels right now," which could put May's output alongside the 30 year high seen in November last year.

With Al-Falih adding that domestic requirement was 2 million barrels per day (bpd), it leaves 8 million bpd available for export.

Output for the Organization of the Petroleum Exporting Countries (OPEC) as a whole in May was its highest since 2008 with supply from the 12-member Organization averaging 31.80 million bpd, up from 31.75 million bpd in April.