TODAY.AZ / Business

OPEC compliance with oil cuts lowest since early 2017

13 July 2017 [17:09] - TODAY.AZ

By Azernews

By Sara Israfilbayova

OPEC's compliance with oil output cuts fell in June to 78 percent, the lowest levels in 6 months.

The compliance level of the cartel countries fell from last month’s 95 percent to 78 percent as output from Algeria, Ecuador, Gabon, Iraq, the UAE and Venezuela compensate strong compliance from Saudi Arabia, Kuwait, Qatar and Angola, Reuters reported.

"Each month something seems to come along to raise doubts about the pace of the rebalancing process," the International Energy Agency (IEA) report said.

OPEC and other major oil producers such as Russia, Azerbaijan, Bahrain, Brunei, Equatorial Guinea, Kazakhstan, Malaysia, Mexico, Oman, Sudan, and South Sudan reached an agreement in December 2016 to curb production by 1.8 million barrels a day from the market starting from January 2017.

The cartel and its partners decided to extend its production cuts till March 2018 in Vienna on May 25, as the oil cartel and its allies step up their attempt to end a three-year supply glut that has savaged crude prices and the global energy industry.

OPEC reported that its output increased by 393,000 barrels per day in June to 32.611 million barrels per day, thanks to extra output from Nigeria and Libya.

OPEC members Libya and Nigeria were exempted from the cuts because of years of unrest that have undermined their oil output. The two countries have managed to increase their combined production by more than 700,000 barrels per day in recent months, the IEA said.

Earlier, Kazakh Energy Minister Kanat Bozumbayev said that Kazakhstan wills to exit from the OPEC deal with gradual increase in production within a period of 1-2 months, said Energy Minister Kanat Bozumbayev

Kazakhstan has committed to cut output by 20,000 barrels per day from November 2016.

Saad Sherida al-Kaabi, CEO of Qatar Petroleum (QP) said that Qatar is committed to an agreement to reduce oil production and does not intend to increase the extraction of "black gold", Bloomberg reported.

He noted that Qatar will consider the issue of increasing production at the Al-Shaheen field, adding that that the planned investment in the deposit of $3.5 billion over 5 years from the French Total will support production. "We have a lot of ambitions, we are in a huge growth mode," he stressed.

The French oil and gas company Total reported that it had signed an agreement with Qatar Petroleum and received a 30 percent share in the concession of the Al-Shaheen offshore oil field for 25 years, starting July 14, 2017.


Print version

Views: 1261

Connect with us. Get latest news and updates.

Recommend news to friend

  • Your name:
  • Your e-mail:
  • Friend's name:
  • Friend's e-mail: