Baku, Azerbaijan, Feb.13
By Leman Zeynalova – Trend:
OPEC compliance with the oil output cut deal has reached 137 percent, the International Energy Agency (IEA) said in its Oil Market Report.
“OPEC crude oil production in January was steady month-on-month (m-o-m) at 32.16 million barrels per day. Higher Nigerian output offset losses elsewhere. Compliance with supply cuts reached a new high of 137 percent,” said the report.
This is while IEA estimates that non-OPEC output dropped by 175,000 barrels per day in January, to 58.6 million barrels per day, but was 1.3 million barrels per day higher than a year ago.
“US crude output, up 1.3 million barrels per day year-on-year (y-o-y), will soon overtake Saudi Arabia and could catch Russia by the end of the year. Compliance with output cuts by non-OPEC countries was 85 percent,” said the report.
IEA experts believe that in 2018, fast rising production in non-OPEC countries, led by the US, is likely to grow by more than demand.
“For now, the upward momentum that drove the price of Brent crude oil to $70 per barrel has stalled; partly due to investors taking profits, but also as part of the corrections we have seen recently in many markets. Most importantly, the underlying oil market fundamentals in the early part of 2018 look less supportive for prices,” said the report.
OPEC and several other non-OPEC producers have reached an agreement to extend the production deal for a further nine months. This would shift the expiration date of the agreement from March to the end of 2018. The agreement is on the same terms as those agreed in November 2016.
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