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Expert talks July compliance with OPEC deal

Commentary Materials 4 August 2017 17:30 (UTC +04:00)
Based on preliminary indications, July compliance levels for the 12 OPEC countries involved in the deal were broadly consistent with June, at around 93 percent, an expert said.
Expert talks July compliance with OPEC deal

Baku, Azerbaijan, Aug. 4

By Kamila Aliyeva – Trend:

Based on the preliminary indications, July compliance levels for the 12 OPEC countries, involved in the deal, were broadly consistent with June, at around 93 percent, Rhidoy Rashid, analyst at Energy Aspects, told Trend.

“However, Libya and Nigeria, who are not currently included in the cuts, both increased their production in July, meaning total OPEC output was likely higher than in June,” he said.

The expert noted that, for non-OPEC countries, compliance was also broadly consistent, except for small gains in Kazakh production.

“Overall, the effectiveness of the deal in boosting oil prices has been muted, largely a result of a strong rebound in the US production and also surprise recoveries in Nigerian and Libyan output, which has slowed the crude rebalancing process,” he added.

In late 2016 OPEC agreed to slash the output by 1.2 million barrels per day from Jan. 1, with top exporter Saudi Arabia cutting as much as 486,000 barrels per day. Non-OPEC oil producers such as Azerbaijan, Bahrain, Brunei, Equatorial Guinea, Kazakhstan, Malaysia, Mexico, Oman, Russia, Sudan, and South Sudan agreed to reduce the output by 558,000 barrels per day. The agreement was for six months period, extendable for another six months.

In May, all the participants of last year's agreement agreed to extend it for another nine months.

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