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Russian oil output is down 307,600 barrels per day, compared to October levels, according to the country’s oil minister.
“At the end of July 2017, the reduction of oil production stood at 307,600 barrels a day as compared to October 2016,” Minister Alexander Novak told reporters. “Therefore Russia is meeting is obligations on lowering production.”
Novak was referring to the promise Moscow made to OPEC and 10 other NOPEC nations in November to cut production by 300,000 bpd in an effort to rebalance oil supply wth demand.
A week ago, Novak had said Russian cuts totaled 308,000 bpd in June.
OPEC and non-member partners agreed to extend the agreement through March 2018 in late May, but the news has not translated to substantially higher barrel prices. High output from Libya, Nigeria, and the United States has offset the intended effect of the cartel’s production cuts. Nigeria recently announced its intention to limit output at 1.8 million, once its national production recovers to that level later this year.
Oil prices are doing better now than they were in June, when they reached a seven-month low below $45. At the time of this article’s writing, Brent traded down 2.75 percent at $51.27.
Novak also previously emphasized that over the last six months, global crude oil supply has shrunk by 350 million barrels thanks to OPEC’s production reduction deal. The minister spoke at a summit in St. Petersburg tasked to track the progress of the agreement.
Compliance to the output cuts on the OPEC side has been above 100 percent for the past few months, though export levels amongst Saudi Arabia, Iraq, and Iran have fluctuated in the fight to keep market share as American distributors carve out their own customer base.
By Zainab Calcuttawala for Oilprice.com
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Zainab Calcuttawala is an American journalist based in Morocco. She completed her undergraduate coursework at the University of Texas at Austin (Hook’em) and reports on…