IEA: Russia fulfills OPEC plus deal terms by 50% in June

MOSCOW, Jul 12 (PRIME) -- Russia reduced its compliance with the OPEC+ oil deal to 50% in June from 83% in May with daily oil output 150,000 barrels below the level of October 2016, the International Energy Agency (IEA) said on Thursday in a report citing preliminary data.

The IEA also said in its preliminary report for June that the average level of Russia’s compliance with the deal stands at 79%.

Combined oil output of OPEC states in June 2018 was 1.41 million barrels a day lower than the output in October 2016, but output grew 180,000 barrels on the month to 31.87 million barrels in June, meaning that the countries reduced their compliance level to 120% from 158%.

Participants of the agreement outside OPEC raised their combined daily oil output by 50,000 barrels on the month to 18.5 million barrels in June, reducing their compliance with the deal to 66% from 75%, the agency said.

The agency kept its forecast for average daily world demand for oil in 2018 at 99.1 million barrels, but reduced the figure for 2019 by 100,000 barrels to 100.5 million barrels.

The IEA also said that commercial reserves of oil in member states of the Organization for Economic Cooperation and Development increased 13.9 million barrels to 2.84 billion barrels in May, growing for the third month in a row.

Still, the reserves were 23 million barrels lower than the average 5-year figure as of the end of May, and preliminary data showed that the reserves fell in June, the agency said.

In November 2016, OPEC and non-OPEC states agreed to reduce their oil production to rebalance the market. Russia joined the agreement to cut the output by 300,000 barrels daily as compared with the level of October 2016. In 2017, the deal was prolonged until the end of 2018. In June, the participants decided to raise the output by 1 million barrels of oil per day.

The Russian Energy Ministry and OPEC have repeatedly said that participants of the agreement and the IEA use different methodologies for calculation of levels of cooperation with the deal.

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