IEA: Russia complies with OPEC+ oil output cut deal 78% in Jan

MOSCOW, Feb 13 (PRIME) -- Russia’s oil production grew by 20,000 barrels per day to 11.29 million barrels per day in January, meaning that the country’s compliance with the OPEC+ oil output reduction deal amounted to 78%, the International Energy Agency (IEA) said in a report on Thursday.

The combined daily oil output of the OPEC states fell by 710,000 barrels per day on the month to 28.86 million barrels per day in January. The organization overfulfilled the deal by 43%.

The OPEC+ states jointly complied with the deal by 123%.

The IEA has decreased its assessment of global demand for oil by 365,000 barrels per day to 825,000 barrels per day in 2020, the lowest since 2011. In January–March, demand will fall to 435,000 barrels per day due to the coronavirus outbreak. In 2019, demand amounted to 885,000 barrels per day.

The IEA expects a significant oil surplus in January–June, mainly due to rising supply from non-OPEC states.

Commercial reserves of oil in the countries of the Organization for Economic Cooperation and Development (OECD) amounted to 2.915 billion barrels in January, which topped the average 5-year reserves by 26.4 million barrels.

In November 2016, OPEC and non-OPEC states including Russia first decided to reduce their oil output to rebalance the market, and agreed on additional reduction in December 2018. In July, they prolonged the deal until April 2020. According to the latest amendments, the agreement stipulates a production cut by 2.1 million barrels per day.

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