IEA: Russia complies with OPEC+ oil output cut deal 100% in June

MOSCOW, Jul 10 (PRIME) -- Russia’s oil production fell by 70,000 barrels per day to 8.5 million barrels per day, or 9.3 million barrels per day including gas condensate, in June, meaning that the country’s compliance with the OPEC+ oil output reduction deal amounted to 100%, the International Energy Agency (IEA) said in a report on Friday.

The OPEC+ states jointly complied with the deal by 108% by reducing oil production by 10 million barrels per day.

In April–June, the world saw an unprecedented decline in demand for oil of 16.4 million barrels per day in April, the IEA said. 

The agency has decreased its assessment of a global demand fall in 2020 to 7.9 million barrels per day from 8.1 million barrels per day, and currently sees demand at 92.1 million barrels per day in the year. The 2021 oil demand growth forecast was reduced to 5.3 million barrels per day from 5.7 million barrels per day.

In June, global oil supply decreased to a 9-year low of 86.9 million barrels per day, which is 2.4 million barrels per day lower than in May, and 13.4 million barrels per day lower than in June 2019, the IEA also said.  

The agency decreased its forecast for a fall in non-OPEC oil supply in 2020 to 3 million barrels per day from 3.1 million barrels per day. Non-OPEC oil supply will decrease by 5.4 billion barrels per day in October–December, and then recover by 0.7 million barrels per day in 2021.

Global oil supply may fall by 7.1 million barrels per day in 2020, and rise by 1.7 million barrels per day in 2021 if the OPEC+ oil output cut deal is implemented fully, the IEA also said.

Commercial reserves of oil in the countries of the Organization for Economic Cooperation and Development (OECD) grew by 81.7 million barrels, or by 2.64 million barrels per day, to 3.216 billion barrels in May, which topped the average 5-year reserves by 258.5 million barrels.

In April, the OPEC+ countries agreed to reduce their oil output by 9.7 million barrels per day in May–June, with Russia’s share of 2.5 million barrels per day, and to decrease daily reduction afterwards. In June, the participants decided to prolong the cut of 9.7 million barrels per day for July. The agreement is valid until April 30, 2022, but the members will revise its extension in December 2021.

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