IEA: Russia fulfills OPEC plus deal terms by zero in July

MOSCOW, Aug 10 (PRIME) -- Russia reduced its compliance with the OPEC plus oil deal to zero in July from 50% in June as its daily oil output stood at 11.6 million barrels, or at the same level as of October 2016, the International Energy Agency (IEA) said on Friday in a report.

The IEA also said that the average level of Russia’s compliance with the deal stands at 75%.

The combined compliance of all states that participate in the OPEC plus deal fell to 97% in July.

Combined oil output of OPEC states in July stood at 32.18 million barrels a day as an unexpected decrease in offer from Saudi Arabia was compensated by a growth of production in the United Arab Emirates, Kuwait, and Nigeria. OPEC’s compliance with the deal remained flat on the month at 121%, the IEA said.

Participants of the agreement outside OPEC reduced their compliance with the deal to 44% in July from 63% in June as their combined daily oil production last month was only 240,000 barrels lower than in October 2016, the agency said.

The agency kept its forecast for average daily world demand for oil in 2018 at 99.2 million barrels, but raised the figure for 2019 by 100,000 barrels to 100.7 million barrels.

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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