IEA: Russia complies with OPEC+ oil output cut deal by 95% in Jan

MOSCOW, Feb 11 (PRIME) -- Russia’s compliance with the OPEC+ oil output reduction deal rose to 95% in January from 93% in December 2020, the International Energy Agency (IEA) said in a report on Thursday.

OPEC+ states jointly complied with the deal by 103% in January, up from 100% in December, with OPEC countries’ compliance at 108% and non-OPEC states’ compliance at 94%, the IEA said.

Global oil production rose by 0.6 million barrels per day on the month to 93.6 million barrels per day in January, a record amount since April 2020, the agency said.

In total, 23 countries of the alliance increased oil production by 360,000 barrels per day on the month to slightly above 40 million barrels per day, the highest level over the past nine months, with Russia and Saudi Arabia showing robust increases, while Kuwait and the United Arab Emirates raised their outputs in a more moderate way. Production of OPEC states alone went up 240,000 barrels a day to 25.45 million barrels in the month.

The IEA projects that oil production outside OPEC+ will rise by 0.8 million barrels per day in 2021, up by 0.3 million barrels as compared with the previous estimate. The agency also worsened its forecast for oil demand increase in 2021 to 5.4 million barrels per day from 5.5 million barrels per day.

The agency also said that commercial reserves of the Organization for Economic Cooperation and Development (OECD) dropped by 44.6 million barrels per day on the month in December 2020 and overshoot the 5-year average by 138.3 million barrels.

The OPEC+ countries agreed to reduce their oil output by significant 9.7 million barrels per day in May to fight the consequences of the global coronavirus crisis, with Russia’s share of 2.5 million barrels per day. Later, the cut was prolonged at 9.7 million barrels per day for July, narrowed to 7.7 million barrels per day for August–December, and then to 5.8 million barrels per day until May 2022. The agreement is valid until April 30, 2022, but the members will revise its extension in December 2021.

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