BAKU, Azerbaijan, Feb.12
By Leman Zeynalova – Trend:
According to secondary sources, total OPEC-14 preliminary crude oil production averaged 28.86 million barrels per day in January, lower by 509,000 barrels per day month-on-month, Trend reports with reference to OPEC’s February Monthly Oil Market Report (MOMR).
Crude oil output increased mainly in Saudi Arabia and Nigeria, while production decreased mainly in Libya, Iraq and Kuwait, reads the report.
The share of OPEC crude oil in total global production decreased by 0.5 percentage points to 28.8 percent in January compared with the previous month.
“Estimates are based on preliminary data from direct communication for non-OPEC supply, OPEC NGLs and nonconventional oil, while estimates for OPEC crude production are based on secondary sources,” reads the report.
OPEC natural gas liquids (NGLs) and non-conventional liquids are estimated to have grown by 0.04 million barrels per day in 2019 to average 4.80 million barrels per day, unchanged from last month’s assessment, following growth of 0.12 million barrels per day in 2018.
“OPEC NGL output in November and December showed increases of 0.02 million barrels per day month-on-month to average 4.86 million barrels per day and 4.88 million barrels per day, respectively. Preliminary production in January also indicates month-on-month growth of 0.01 million barrels per day to average 4.89 million barrels per day. The preliminary 2020 forecast indicates growth of 0.03 million barrels per day to average 4.83 million barrels per day,” reads the report.
During the seventh OPEC and non-OPEC Ministerial Meeting held in December 2019, it was decided for an additional voluntary production adjustment of 500,000 barrels per day over levels agreed in the 175th Meeting of the OPEC Conference and 5th OPEC and non-OPEC Ministerial Meeting, leading to a total adjustment of 1.7 million barrels per day.
Following an extraordinary meeting of the Joint Technical Committee (JTC) held in Vienna, from 4-6 Feburary 2020, the JTC has recommended extending voluntary production adjustments under the ‘Declaration of Cooperation’ process until the end of 2020 and to proceed with an additional adjustment until the end of the second quarter.
The JTC’s recommendations come in response to the fact that the coronavirus epidemic has had a negative impact on oil demand and oil markets.
The Committee also recommended a further adjustment in production until the end of the second quarter of 2020.
---
Follow the author on Twitter: @Lyaman_Zeyn