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OPEC oil production fell by 2 mb/d

Oil&Gas Materials 9 August 2019 12:49 (UTC +04:00)

Baku, Azerbaijan, Aug.9

By Leman Zeynalova – Trend:

Global oil supply held steady in July above 100 million barrels per day (mb/d), but fell below year earlier levels for the first time since November 2017, Trend reports with reference to the International Energy Agency (IEA).

Robust compliance with OPEC+ supply cuts and losses from Venezuela and Iran saw OPEC oil production fall by 2 mb/d versus July 2018, reads the Oil Market Report of IEA.

Non-OPEC supply was up 1.4 mb/d y-o-y in July and is set to grow by 1.9 mb/d in 2019 and 2.2 mb/d next year, according to IEA estimates.

“The short term market balance has been tightened slightly by the reduction in supply from OPEC countries. Production fell in July by 0.2 mb/d, and it was backed up by additional cuts of 0.1 mb/d by the ten non-OPEC countries included in the OPEC+ agreement. In a clear sign of its determination to support market re-balancing, Saudi Arabia’s production was 0.7 mb/d lower than the level allowed by the output agreement,” reads the report.

IEA said that if the July level of OPEC crude oil production at 29.7 mb/d is maintained through 2019, the implied stock draw in 2H19 is 0.7 mb/d, helped also by a slower rate of non-OPEC production growth.

“However, this is a temporary phenomenon because our outlook for very strong non-OPEC production growth next year is unaltered at 2.2 mb/d. Under our current assumptions, in 2020, the oil market will be well supplied,” said the report.

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