OPEC retains Russia’s 2020 oil output forecast at 10.14 mln bpd

MOSCOW, May 13 (PRIME) -- OPEC has retained its forecast for liquid hydrocarbon production in Russia at 10.14 million barrels per day in 2020, a fall by 1.3 million barrels per day under the new OPEC+ deal, the organization said in a monthly report on Wednesday.

In April, Russia increased oil production by 60,000 barrels per day to 11.55 million barrels per day. The state’s output reduction is expected at 1.38 million barrels per day in 2020, starting from May.

The OPEC states increased oil production by 1.8 million barrels a day on the month in April to 30.4 million barrels a day, mainly thanks to growth of production in Saudi Arabia, the UAE and Kuwait.

OPEC also said that the three countries will widen their crude production cut in June by 1 million barrels per day, 100,000 barrels per day and 80,000 barrels per day in addition to the previously agreed reduction.

Commercial reserves of oil in the countries of the Organization for Economic Cooperation and Development (OECD) rose by 57.7 million barrels on the month to 3 billion barrels in March, which tops a five-year average by 88.6 million barrels.

The organization again worsened its forecast for a global fall in oil demand in 2020 by 2.23 million barrels per day to 9.07 million barrels per day.

OPEC has changed its forecast for the decrease of oil supply by states outside the organization to 3.5 million barrels per day in 2020.

In April, the OPEC+ countries agreed to reduce their oil production by 9.7 million barrels per day in May–June, by 7.7 million barrels per day in July–December, and by 5.8 million barrels per day from January 2021 through April 2022. Russia’s share in the reduction will amount to 2.5 million barrels per day in May–June. The agreement is valid until April 30, 2022, but the members will revise its prolongation in December 2021.

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