OPEC raises Russia’s oil output forecast to 11.4 mln bpd for 2019

MOSCOW, Sep 11 (PRIME) -- OPEC increased forecasts for liquid hydrocarbon production in Russia to 11.4 million barrels per day in 2019 and 11.5 million barrels per day in 2020, the organization said in a monthly report on Wednesday.

The OPEC states increased oil production by 136,000 barrels a day in August to 29.741 million barrels a day, mostly thanks to a rise in production in Saudi Arabia, Nigeria, Iraq and UAE, while overfulfillment of the OPEC+ oil output cut deal was reduced to 19% from 45% in July.

Commercial reserves of oil in the countries of the Organization for Economic Cooperation and Development (OECD) exceeded their average 5-year figure by 36 million barrels and amounted to 2.944 billion barrels in July, rising by 108 million barrels as compared with July 2018.

OPEC increased its forecast for oil supply in 2019 by states outside the organization by 10,000 barrels per day to 1.99 million barrels per day, and reduced the 2020 forecast by 136,000 barrels per day to 2.25 million barrels per day.

The organization decreased its forecast for oil demand growth in 2019 by 80,000 barrels per day to 1.02 million barrels per day, and in 2020 by 60,000 barrels per day to 1.08 million barrels per day. Global demand for oil is seen at 99.84 million barrels per day in 2019 and 100.92 million barrels per day in 2020.

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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