IEA announces growth rates and forecasts for oil production in 2021

BAKU, Azerbaijan, July 13

By Sadraddin Aghjayev - Trend:

OPEC + countries increased oil production by 500,000 barrels per day in June 2021, Trend reports referring to the report of the International Energy Agency (IEA).

According to the source, OPEC + increased production in June up to 40.9 million bpd, the countries still pumped by 1.4 million bpd less than required upon the deal.

Oil production requirements for OPEC + in the third quarter increase up to 42.8 million bpd. The demand for OPEC + oil will grow by 1.3 million bpd up to 44.1 million bpd in the fourth quarter.

"This figure is fixed at 43.4 million bpd for 2022 compared to 42.3 million bpd this year," IEA said.

Moreover, the OPEC + deal was executed by 114 percent in June as in the previous month, while the level of execution by OPEC countries participating in the transaction reached 123 percent, by non-OPEC countries - 97 percent.

OPEC countries’ production growth potential was limited by declining production in Iraq, Angola and Nigeria.

However, the 0.38 million bpd growth in Saudi Arabia's production helped boost the OPEC total index by 450 bpd to 25.93 million bpd, while non-OPEC production remained stable at about 15 million bpd.

Azerbaijan fulfilled its obligations upon the OPEC + deal by 100 percent, Russia - by 96 percent, Kazakhstan - by 84 percent in June 2021.

"Oil production in Iran, which is not participating in the OPEC + deal, increased by 50,000 bpd in June, which is by 550,000 bpd more than a year earlier. Export of oil, including condensate, increased up to 440,000 bpd amid the negotiations on a nuclear deal.

Reaching an agreement will pave the way for the big increase in Iranian production, probably in 2-3 months. If sanctions are loosened, Iran can quickly ramp up production to the sustainable production capacity of 3.8 million bpd.

"Iran also has about 59 million barrels of oil and condensate stored on tankers and it will strive to get rid of this as soon as possible," the report said.

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