• 3 minutes Nucelar Deal Is Dead? Iran Distances Itself Further From ND, Alarming Russia And France
  • 5 minutes Don Jr. Tweets name Ukraine Whistleblower, Eric Ciaramella. Worked for CIA during Obama Administration, Hold over to Trump National Security Counsel under Gen McCallister, more . . . .
  • 9 minutes Shale pioneer Chesepeak will file bankruptcy soon. FINALLY ! The consolidation begins
  • 12 minutes China's Blueprint For Global Power
  • 7 hours EU has already lost the Trump vs. EU Trade War
  • 1 day Science: Only correct if it fits the popular narrative
  • 19 hours Crazy Stories From Round The World
  • 1 day Iran Burning: Shock Gas Price Hike Triggers Violent Protests After Subsidy Cuts
  • 20 hours Everything You Need To Know About Trump
  • 7 hours IEA predicts oil demand will grow annually at 1 million barrels a day for the next 5 years
  • 10 mins Pope Proposes New Sin: Thou Shalt Not Destroy The Harmony Of The Environment
  • 1 day Atty General Barr likely subpeona so called whistleblower and "leaker" Eric Ciaramella
  • 2 hours Water, Trump, and Israel’s National Security
  • 18 hours Impeachment Nonsense
  • 10 hours ‘If it saves a life’: Power cut to 1.5 million Californians
  • 2 days What are the odds of 4 U.S. politicians all having children working for Ukraine Gas Companies?
  • 2 days Who writes this stuff? "Crude Prices Swing Between Gains, Losses"
Aramco Reveals Its Valuation

Aramco Reveals Its Valuation

Aramco will sell the first…

Strong OPEC Cuts Slightly Tightening Oil Market In The Short Term

Oil tanker

OPEC’s crude oil production dropped by 200,000 bpd in July from June, and helped by additional cuts of 100,000 bpd from the non-OPEC part of the production cut coalition, the market balance in the short term has tightened slightly, the International Energy Agency (IEA) said on Friday, but warned that the slightly tighter market is a “temporary phenomenon.”

According to IEA’s estimate reported by TASS, OPEC’s compliance with the production cuts that were extended into 2020 in early July was 119 percent last month, while the non-OPEC countries part of the deal showed overall compliance of 107 percent with their share of the cuts. 

“Robust compliance with OPEC+ supply cuts and losses from Venezuela and Iran saw OPEC oil production fall by 2 mb/d versus July 2018,” the IEA said in its Oil Market Report.

Saudi Arabia’s production in July was 700,000 bpd below its quota under the OPEC+ deal, “in a clear sign of its determination to support market re-balancing,” the IEA said.

On Thursday, reports emerged that Saudi Arabia had approached other members of OPEC to discuss possible steps they can take to arrest a slide in oil prices that have brought them to the lowest in seven months.

Deeper production cuts at leading producer Saudi Arabia, lower output at sanctions-hit Iran, and outages in Libya and Venezuela sent OPEC’s crude oil production in July falling to its lowest level since 2011, the monthly Reuters survey found last week.    

The IEA estimates that OPEC’s crude oil production was 29.7 million bpd in July. Should the cartel keep that output level through the rest of the year, this would imply a draw in global stocks of 700,000 bpd in the second half of 2019, also assisted by slowing growth pace of non-OPEC production, the Paris-based agency said.  

The slight market tightening, however, will be shattered again next year, as the IEA expects “very strong” non-OPEC production growth at 2.2 million bpd, which, under the current assumptions, will mean that “the oil market will be well supplied.”  

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News
Download on the App Store Get it on Google Play