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Global oil supply down thanks to oil output cut deal

Oil&Gas Materials 24 July 2017 15:46 (UTC +04:00)
The deal between OPEC and non OPEC oil producers on oil output cut (OPEC+) allowed removing of 350 million barrels of oil from the market, RIA Novosti quoted Russian Energy Minister Aleksandr Novak as saying.
Global oil supply down thanks to oil output cut deal

Baku, Azerbaijan, July 24

By Elena Kosolapova – Trend:

The deal between OPEC and non OPEC oil producers on oil output cut allowed removing of 350 million barrels of oil from the market, RIA Novosti quoted Russian Energy Minister Aleksandr Novak as saying.

"Over 350 million barrels of oil supply were removed from the market by joint efforts in the first half of the year," Novak said at a meeting of the ministerial committee responsible for monitoring of the implementation of the oil output cut deal.

He noted that oil reserves in oil storage facilities have reduced thanks to this deal. In particular, oil reserves in OECD countries have reduced by 90 million barrels since the beginning of the year, Novak said.

In late 2016 OPEC agreed to slash the output by 1.2 million barrels per day from Jan. 1, with top exporter Saudi Arabia cutting as much as 486,000 barrels per day. Non-OPEC oil producers such as Azerbaijan, Bahrain, Brunei, Equatorial Guinea, Kazakhstan, Malaysia, Mexico, Oman, Russia, Sudan, and South Sudan agreed to reduce the output by 558,000 barrels per day. The agreement was for six months period, extendable for another six months.

In May, all the participants of last year's agreement agreed to extend it to another nine months.

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