Baku, Azerbaijan, Feb.10
By Leman Zeynalova – Trend:
Non-OPEC countries outside of the output deal, are expected to significantly increase the oil production, according to the February Oil Market Report of the International Energy Agency (IEA).
For example, the combined output of Brazil, Canada and the US is expected to grow by 750,000 barrels per day in 2017, according to the report.
The net change for non-OPEC production in 2017, taking into account cuts by eleven countries, is close to a 400,000 barrels per day increase, IEA analysts believe.
For US LTO (light tight oil or shale oil), recent increases in drilling activity suggest that production will recover and the IEA’s forecast is growth of 175,000 barrels per day for the year as a whole with production in December expected to be 520,000 barrels per day up on a year earlier.
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.
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