OPEC output to go down in 2019
Baku, Azerbaijan, Jan.17
By Leman Zeynalova – Trend:
OPEC crude oil output will decrease by 1 million barrels per day (b/d) on average in 2019 and will remain flat in 2020, Trend reports citing the US Energy Information Administration (EIA).
EIA expects that OPEC surplus crude oil production capacity, which averaged 1.5 million b/d in 2018, will increase to 1.9 million b/d in 2019 and to 2.3 million b/d in 2020. This estimate does not include additional capacity that may be available in Iran but is offline because of US sanctions on Iranian oil sales, according to EIA Short-Term Energy Outlook.
Iraq is one of the main sources of production growth among OPEC members in the extended forecast period, the report reads.
EIA forecasts average Saudi production to fall below that level in 2019 and in 2020 as it complies with the latest OPEC+ production cut agreement.
EIA expects Venezuela’s production to continue to fall through the forecast period—albeit at a slower overall rate of decline—while the financial situation of the state-owned Petróleos de Venezuela (PdVSA) remains extremely precarious.
OPEC non-crude oil liquids production averaged 5.3 million b/d in 2018 and EIA forecasts that it will remain roughly flat in 2019, and then decrease by 0.2 million b/d in 2020. “The decrease in crude oil liquids next year is the result of lower expected condensate output in Iran.”
OPEC and its partners decided to extend its production cuts till the end of 2018 in Vienna on November 30, as the oil cartel and its allies step up their attempt to end a three-year supply glut that has savaged crude prices and the global energy industry.
The 5th OPEC and non-OPEC Ministerial Meeting was held in Vienna, Austria, on December 7, 2018.
The meeting participants decided to adjust the overall production by 1.2 million barrels per day, effective as of January 2019 for an initial period of six months. The contributions from OPEC and the voluntary contributions from non-OPEC participating countries of the ‘Declaration of Cooperation’ will correspond to 0.8 million barrels per day (2.5 percent), and 0.4 million barrels per day (2 percent), respectively.
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