IEA: Russia’s oil output rises by 40,000 bpd on month in June

MOSCOW, Jul 12 (PRIME) -- Russia’s oil production grew by 40,000 barrels per day on the month to 11.15 million barrels per day in June, which accounted for a 14% overfulfillment of the OPEC+ agreement, the International Energy Agency (IEA) said in a report on Friday.

In May, Russia's oil production dropped drastically due to contamination of crude in the Druzhba export pipeline which put it temporarily out of operations. In June, exports via the pipeline mostly resumed.

Non-OPEC states fulfilled the OPEC+ oil production cut agreement by 98%.

The OPEC states complied with the deal by 128% cutting the output by 90,000 barrels per day to 29.9 million barrels per day in the month with Iran, Iraq and Angola being the main contributors.

The IEA expects a glut on the global oil market in 2020 due to rising supplies by non-OPEC states, primarily the U.S., although the organization decreased its forecast for non-OPEC oil supplies growth by 200,000 barrels per day to 2.1 million barrels per day in the year.

In November 2016, OPEC and non-OPEC states including Russia first agreed to reduce their oil output to rebalance the market. In December 2018, the states decided to cut production by an additional 800,000 barrels per day for OPEC and 400,000 barrels per day for non-OPEC states, including 228,000 barrels per day for Russia, from the level of October 2018. In July, they prolonged the deal until April 2020.

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