OPEC: Iran decreases oil output

Business Materials 14 December 2016 17:07 (UTC +04:00)

Baku, Azerbaijan, Dec. 14

By Emil Ilgar – Trend:

Iran has increased oil output by 5,700 barrels per day (b/d) to 3.703 million b/d in November month-to-month, OPEC estimated in its monthly report, released Dec.14.

According to the report, the Cartel’s total output increased by 150,800 b/d to 33.87 million b/d in November, while the demand for OPEC crude in 2016 is estimated to stand at 31.9 mb/d, an increase of 1.9 mb/d over 2015. In 2017, demand for OPEC crude is forecast at 32.6 mb/d, a gain of 0.7 mb/d compared to 2016.

According to the report, Iran’s heavy oil price plunged from $51.39 in Jan-Nov 2015 to $38.52 in the same period in 2016.

Increasing the OPEC’s oil output to 33.87 mb/d came, while the Cartel reached an agreement to decrease the output by 1.2 mb/d to 32.5 mb/d in January 2017, compared to October 2016.

Now, OPEC should decrease 1.37 mb/d to meet the January target.

On the other hand, according to the report, released by the International Energy Agency on December 13, OPEC’s output was far above its own estimated figure, at 34.2 mb/d, means the Cartel should decrease the output by 1.7 mb/d at least from November level to meet the January target.