• August 14, 2017
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The parties to the agreement, OPEC performed it in July to 75% YTD 87%

MOSCOW, August 11. /TASS/. The participants of the OPEC agreement to reduce oil production was performed in July by 75%. This is stated in the July report by the International energy Agency (IEA).

OPEC countries increased oil production in July to 230 thousand barrels – to 32.84 million, a record growth of production since the beginning of the year. The increase was mainly due to the active recovery of production in Libya, which, like Nigeria, are excluded from measures to reduce production.

Thus, the level of execution of the transaction in July fell by 2 percentage points by June and amounted to 75%. From the beginning, the figure was 87%.

In July, production in Libya increased by 170 thousand barrels to more than 1 million barrels. In Nigeria, by 30 thousand barrels to 1.6 million In the period grew production also Iran, Equatorial Guinea, Gabon, Algeria and the UAE. Ecuador also stated that it can no longer reduce the supply of oil as it reduces the oil income of the country. The high performance of obligations on reduction in July was in Equatorial Guinea 167% (20 million), Angola – 129% (100 million), Qatar – 127% (40 million barrels), Kuwait – of 105% (140 thousand) and Saudi Arabia – 102% (490 thousand).

Ten countries outside OPEC is involved in the transaction, in July, performed his obligations by 67% since the beginning of the year – an average of 60%. In June the figure was 66%. In absolute terms, the parties to the transaction outside OPEC reduced production in July to October of last year at 364 thousand 546 thousand barrels of provisions. Including Russia fulfilled the agreement by 92%, reducing production by 276 thousand barrels, with the beginning of the year – an average of 70%.

Better than all the plan to reduce production in July was performed in Mexico – 101% (a decrease of 101 thousand barrels). Oman reduced production at 96% of plan (a reduction of 43 thousand), Azerbaijan – on 43% (down 16 thousand). Kazakhstan, pledged to cut production by 20 thousand barrels, raised it to 73 thousand barrels compared to October last year due to production growth in the recently launched Kashagan field. At the request of the consortium engaged in the development, production at the field by the end of this year will be able to reach full 370 thousand barrels from the current 200 thousand As a consequence, the IEA raised its forecast for production in Kazakhstan in 2017 by 20 thousand barrels – up to 1.83 million and in 2018 to 60 thousand to 1.95 million barrels.

The document also notes that the IEA raised its forecast for world oil demand in 2017 to 100 thousand barrels per day compared to the June forecast to 97.6 million barrels per day. The Agency expects global oil demand in 2017 will grow by 1.5 million barrels per day compared to the 2016

According to the IEA, global demand in 2017 will grow by 1.5 million barrels per day compared with the figure for 2016, the Agency expects that in 2018, the demand growth will slow slightly to reach 1.4 million barrels per day. For the year overall demand is projected at 99 million barrels, in the fourth quarter of 2018 it can reach 100,1 million barrels per day.