OPEC unlikely to revise oil output target – expert

Oil&Gas Materials 9 December 2016 12:13 (UTC +04:00)
OPEC is unlikely to cut the oil output by the required amount.
OPEC unlikely to revise oil output target – expert

Baku, Azerbaijan, Dec.9

By Leman Zeynalova – Trend:

OPEC is unlikely to cut the oil output by the required amount, Tom Pugh, the economist at British economic research and consulting company Capital Economics, told Trend Dec.9.

“I do not think OPEC will revise its target, as this would require too much negotiation and would be seen as an admittance of failure. Instead, they are likely to cut a little but not the whole way,” he added.

During the Vienna meeting held Nov.30, OPEC members decided to implement a new OPEC-14 production target of 32.5 million barrels per day.

The decision was made in order to accelerate the ongoing drawdown of the stock overhang and bring the oil market rebalancing forward.

Saudi Arabia undertook the biggest cut in oil production, as the country agreed to reduce the output volume by 486,000 barrels per day to 10.058 million barrels per day (mbd) from Jan.1, 2017.

The second biggest cut was undertaken by Iraq, which agreed to reduce its oil output by 210,000 barrels per day to 4.351 mbd, UAE – 139,000 bpd to 2.874 mbd, Kuwait – 131,000 bpd to 2.707 mbd.

Algeria’s oil production will be reduced by 50,000 bpd to 1.039 million bpd, Angola – 87,000 bpd to 1.673 million bpd, Ecuador – 26,000 bpd to 522,000 bpd, Gabon – 9,000 bpd to 193,000 bpd, Qatar – 30,000 bpd to 618 million bpd, Venezuela – 95,000 bpd to 1.972 million bpd.

Iran is planned to increase the output by 90,000 bpd to 3,797 million bpd.

However, the recent Reuters survey found that the supply from OPEC increased to 34.19 million barrels per day (bpd) in November from 33.82 million bpd in October.