IEA says Russia fulfils oil production cut deal 88% in January

MOSCOW, Feb 13 (PRIME) -- Russia cut its daily liquid hydrocarbon output by 270,000 barrels to 11.33 million barrels in January as compared to October 2016, having fulfilled an oil production cut agreement by 88%, the International Energy Agency (IEA) said in a report on Tuesday.

The fulfillment of the deal by Russia remained flat from December.

The OPEC states agreed to reduce their oil production by 1.2 million barrels daily to 32.5 million barrels in November 2016. Russia joined the agreement in December 2016 with a promise to cut output by 300,000 barrels daily compared with the level of October 2016. The agreement was concluded for January–June 2017 and was prolonged for nine more months in May. On November 30, 2017 ministers of OPEC states agreed to prolong the deal until the end of 2018.

The OPEC states kept oil production unchanged on the month at 32.16 million barrels in January, fulfilling the agreement by 137%.

Non-OPEC states fulfilled the agreement by 85% in January as compared with 88% in December having reduced oil output by 470,000 barrels a day from October 2016 to 18.39 million barrels.

Energy Minister Alexander Novak told the Council of the Federation that Russia’s additional income from the agreement amounted to 2.5 trillion rubles including 700 billion rubles received by companies.

The IEA increased its 2018 forecast for global oil demand by 100,000 barrels per day to 99.2 million barrels per day, and retained the 2017 assessment at 97.8 million barrels per day.

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