OPEC production declined in February

Countries of crude oil production from the Organization of Petroleum Exporting Countries fell despite the lifting of international sanctions on Iran.

Global oil production fell by 210,000 bpd last month to 92.73 million bpd, according to OPEC. In February, the cartel has seen its production decline by 175,000 bpd from January, to 32.28 million bpd, mainly because of a sharp decline in Iraq.

OPEC, which pumps about a third of world crude, left unchanged its forecast of global demand in 2016 to 94.23 million barrels per day (bpd) or 1.25 more than the previous year.

The organization also confirmed its forecast of a decline of 700,000 barrels per day of production this year non-OPEC countries, primarily in North America, where the context of low prices weighing heavily on production.

The cartel, which had produced 31.85 million bpd on average in 2015, slightly downgraded (100,000 bpd) estimates of the request made to him this year to 31.52 million bpd, after 29.74 million bpd the last year, confirming tendace rebalancing the market.

Low growth in Iran

Despite the lifting of sanctions mid-January, Iranian production has indeed increased by only 245,000 bpd from December, to 3.13 million bpd, reflecting a rise in less than originally announced power by Tehran.

Iran has, however, reiterated this weekend its target of producing 4 million bpd, pulling prices down Monday at the opening in New York, where a barrel of “light sweet crude” for delivery in April yielded 1 , 07 dollar to 37.43 dollars around 15h15.

Regarding the 700,000 bpd of production cutbacks affecting non-OPEC countries, the cartel believes his forecast is “more uncertain” than the previous month, due to “cuts in production costs, mainly in the US” and due to the choice of some farmers to “produce at a loss.”

In its report published on March 11, the International Energy Agency for its part had foreseen a drop of 750,000 bpd for non-OPEC countries.

In mid-February, Saudi Arabia and Russia, the two leading producers, agreed to freeze production at the level of January to stem falling prices, which had fallen earlier in the year at the lowest since 2003 facing the general glut. (ats / nxp)

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