Baku, Azerbaijan, Sept. 19
By Aygun Badalova - Trend:
Aggregate supply from both OPEC and non-OPEC is forecasted to contract by 0.2 million barrels per day quarter over quarter during 4Q16, and decline by 0.7 million barrels per day year over year, say the analysts of the US JP Morgan bank.
“Thus, the more important swing factor in the 4Q16 supply forecast is the 0.3 million barrels per day quarter over quarter decline in OPEC supply which is driven entirely by Saudi Arabia,” analysts said in the report, obtained by Trend.
Analysts stressed that Saudi power demand diminishes with seasonally cooler weather in the fourth quarter, reducing the production needs of the country.
They assume Saudi Arabian supply is driven by export volumes, refinery processing needs and domestic power burn.
Saudi Arabia’s oil production amounted to 10,605 million barrels per day in August compared to 10.577 million barrels per day in July, according to OPEC’s latest report.
Total OPEC oil production decreased oil in August by 23,000 barrels per day to 33.24 million barrels per day.
The informal OPEC meeting will be held in late September in Algeria. It is expected that the talks on oil production freeze will be held between OPEC and non-OPEC countries.
The meeting will take place at the fringe of the International Energy Forum in Algiers from 26-28 September.