Baku, Azerbaijan, Feb.13
By Leman Zeynalova – Trend:
The forecast for non-OPEC supply growth was revised up by 120,000 barrels per day to average 57.44 million barrels per day, representing growth of 0.24 million barrels per day, OPEC said in its February Oil Market Report.
“The upward adjustments are due to increased drilling activity and investment in the US, leading to higher onshore crude oil and NGLs (natural gas liquids) production,” said the report.
This is while, the non-OPEC oil supply estimation for 2016 was revised up by 50,000 barrels per day to average 57.20 million barrels per day, representing a contraction of 0.66 million barrels per day, said the cartel.
The revision was mainly driven by higher-than-expected growth in 4Q16 in the US, Canada, Norway, Russia and China, which was partially offset by downward revisions in Kazakhstan, Australia and Malaysia, according to the report.
During a meeting in Vienna, Austria, on Nov. 30, 2016, OPEC members decided to implement a new production target of 32.5 million barrels per day. Later, non-OPEC countries agreed to cut the output by 558,000 barrels per day during the meeting held Dec. 10, 2016.
Eleven non-OPEC countries – Azerbaijan, Bahrain, Brunei, Equatorial Guinea, Kazakhstan, Malaysia, Mexico, Oman, Russia, Sudan, and South Sudan – agreed to reduce the oil output.
OPEC and non-OPEC countries pledged to start implementing the deal from Jan. 1, 2017 for six months, extendable for another six months.
It was also decided to establish a High-level Monitoring Committee, consisting of oil ministers, and assisted by the OPEC Secretariat, to monitor the implementation of the agreement.
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