OPEC says fulfills oil output reduction deal by 122% in June

MOSCOW, Jul 11 (PRIME) -- OPEC decreased its daily oil production by 68,000 barrels to 29.83 million barrels in June, fulfilling an oil output reduction deal between the organization and non-OPEC countries by 122%, the organization said on Thursday in a report quoting data of secondary sources.

Oil output mainly fell in Iraq, Libya, and Angola, but rose in Nigeria and Saudi Arabia.

Commercial reserves of oil in the countries of the Organization for Economic Cooperation and Development (OECD) exceeded their average 5-year figure by 25 million barrels and amounted to 2.925 billion barrels in May, rising by 41.5 million barrels as compared with April and by 96.8 million barrels as compared with May 2018, OPEC said in its June report.

The organization also reduced its 2019 supply growth forecast for the countries outside OPEC by 95,000 barrels per day to 2.05 million barrels to 64.43 million barrels. In 2020, it expects the supply to grow by 2.44 million barrels a day.

Demand for oil in the world will grow by 1.14 million barrels a day in 2019 and in 2020, exceeding the threshold of 100 million barrels next year, OPEC said.

OPEC also cut its forecast for Russia’s daily production of oil and condensate in 2019 to 11.39 million barrels from 11.53 million barrels due to prolongation of the output reduction deal of OPEC and non-OPEC states. The organization also sees Russia’s daily production rising by 100,000 barrels 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. Earlier in July, they prolonged the deal until April 2020.

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