IEA: Non-OPEC states fulfil oil output cut deal 118% in Aug

MOSCOW, Sep 13 (PRIME) -- Non-OPEC states have fulfilled an oil production cut agreement with OPEC states by 118% in August against 68% in July, a contraction by 642,000 barrels per day on the year, the International Energy Agency (IEA) said in a monthly oil market report on Wednesday.

The overall output of non-OPEC states participating in the deal fell by 270,000 barrels per day on the month to 18.174 million barrels per day in August.

Russia’s oil output declined by 316,000 barrels per day from October 2016 to 11.281 million barrels per day in the period, marking a 105% fulfilment of the deal against 92% in July.

“According to the Energy Ministry’s information, Gazprom Neft reduced production 5% in August due to a technical maintenance suspension of the Prirazlomnaya oil platform. Bashneft’s output fell by 12,000 barrels per day. The output of production sharing agreement projects dropped 15% to 324,000 barrels per day in the past month,” the report read.

OPEC countries lowered oil production by 210,000 barrels per day on the month to 32.67 million barrels per day in August for the first time since March, the agency also said.

OPEC states agreed to reduce their oil production by 1.2 million barrels daily to 32.5 million barrels in November 2016. Russia joined the agreement in December with a promise to cut output by 300,000 barrels daily compared with the level of October 2016. The agreement was concluded for January–June and was prolonged for nine more months in May.

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