Baku, Azerbaijan, July 12
By Leman Zeynalova – Trend:
OPEC crude oil production has reached a four-month high in June, the International Energy Agency (IEA) said in its Oil Market Report.
Global oil supply rose by 370,000 barrels per day in June mainly due to higher Saudi Arabian and Russian output as parties to the Vienna Agreement decided to achieve 100 percent compliance, said the report.
“OPEC crude production in June reached a four-month high of 31.87 million barrels per day. A surge from Saudi Arabia offset losses in Angola, Libya, and Venezuela,” said IEA.
IEA expects non-OPEC output is set to expand by 2 million barrels per day in 2018 and by 1.8 million barrels per day next year led by the United States, but there are temporary disruptions in Canada, Brazil, Kazakhstan and the North Sea.
Crude oil prices fell in June but since the Vienna Agreement meetings values for ICE Brent and NYMEX WTI have increased by 7 percent and 13 percent, respectively, on news of supply disruptions. In product markets, increased refinery output and signs of slowing demand put pressure on gasoline, diesel and jet fuel cracks, said the report.
In December 2016, at a meeting of oil producers in Vienna, 11 non-OPEC member countries, including Azerbaijan, agreed to cut oil production by a total of 558,000 barrels a day. The agreement was concluded for the first half of 2017 and was extended until the end of the first quarter of 2018 at a meeting on May 25, 2017.
At the last OPEC meeting in Vienna, the agreement was again extended until the end of 2018. Azerbaijan supported the decision.
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