Baku, Azerbaijan, Feb. 23
By Aygun Badalova - Trend:
The International Energy Agency (IEA) forecasts OPEC oil production to be increasing gradually in the mid-term reaching 33 million barrels per day (bpd) in 2017 and 2018, 33.2 million bpd in 2019, 33.5 million bpd in 2020 and 33.6 million bpd in 2021.
In 2016, OPEC oil production will amount to 32.8 million bpd, according to the IEA's Medium-Term Oil Market Report.
The report mentioned that in mid-February some OPEC members and Russia agreed to freeze production and they indicated that further policy initiatives may follow.
Rising oil production in 2015, notably from Iraq and Saudi Arabia, will now be joined by Iran, freed from nuclear sanctions, the report said.
In mid-term IEA does not expect a major increase in the production capacity of either Iran or neighbouring Iraq due to political uncertainties.
In other OPEC countries IEA sees one of the downsides of low oil prices: massive economic retrenchment in countries such as Algeria, Nigeria and Venezuela will reduce their ability to invest in the oil sector.
For OPEC as a whole oil export revenues slumped from a peak of $1.2 trillion in 2012 to $500 billion in 2015 and, if oil prices remain at current levels, this will fall in 2016 to approximately $320 billion, according to the IEA's estimates.
According to OPEC's monthly report, released on Feb.10, cartel's 13 members produced 32.335 million bpd in January, about 130,700 bpd more than December 2015.
Crude oil output increased mostly from Nigeria, Iraq, Saudi Arabia and Iran, while production showed a decrease of from Angola, Venezuela and Algeria, the report said.
Demand for OPEC crude in 2015 is estimated to average 29.8 million bpd, representing an increase of 0.1 million bpd over the previous year and lower by 0.1 million bpd compared to the previous report.
The official quota for OPEC oil production is set at 30 million barrels per day.