OPEC+ states cut oil production by 34% in January within December`s decision


February 13, Fineko/abc.az. The non-OPEC countries participating in the agreement on oil production cutting fulfilled in January the terms of the deal only by 25% due to production growth in Kazakhstan and low rates of reduction in Russia and Azerbaijan.

According to the February’s report of the International Energy Agency (IEA), in the first month of the year the OPEC countries reduced production by 86% of the target. The OPEC+ countries produced totally 44.66 million bpd in January, while the basic level of production, from which they should cut 1.195 million bpd is 45,069 million bpd. Thus, the real reduction in oil production for all participants of the decision was only 409,000 bpd that corresponds to 34% of the plan.

In January, Kazakhstan increased production (by 50,000 bpd instead of cutting by 40,000 bpd) up to 2.08 million bpd. Russia and Azerbaijan also reduced oil production at a low rate. However, under the terms of agreements, Russia can reduce production gradually.

Oil production for January was reduced most of all by Saudi Arabia, which, however, increased it the most in the 2nd half of 2018. Thus, in January, Saudi production decreased versus October by 390,000 bpd to 10.24 million bpd. Ahead of the production cut were also UAE, Kuwait and Angola. At the same time, such countries as Iraq and Gabon did not cut production, but increased it. Congo's production has not decreased either. Nigeria, Algeria and Ecuador reduced oil production more slowly than necessary.