Hot topics | Coronavirus pandemic

OPEC: Russia In August Improved The Implementation Of The OPEC+ Deal To 99%

OPEC: Russia In August Improved The Implementation Of The OPEC+ Deal To 99%

Russia in August improved the implementation of the agreement on reducing oil production of OPEC+ countries to 99% after the July 91%, follows from the data of the monthly OPEC report, in which the organization kept the forecast for oil and condensate production in Russia in 2020 and 2021 unchanged compared to last month's estimate.

According to official data for Russia, the report notes, the production of liquid hydrocarbons in the country (oil and condensate) in August increased by 0.49 million barrels per day in monthly terms, to 9.97 million barrels per day. At the same time, oil production alone was 9.21 million barrels per day, compared to 8.72 million in July. And condensate production remained unchanged at 760,000 barrels per day.

As follows from these data, as part of the OPEC deal that started in may+ Russia cut oil production by 1.979 million barrels per day in August from the promised 2.007 million. That corresponds to the level of implementation of the agreement by 99% against July 91%, according to OPEC information.

There was no exact data from the Russian energy Ministry for August. But energy Minister Alexander Novak said that the Agency was evaluating the implementation of the OPEC deal+ Russia in August is close to 100%. In July, Russia, according to official OPEC+ data, referring to independent sources of information, fulfilled the agreement by 97%. The Ministry of Energy has repeatedly stressed that the methodology for calculating indicators within the OPEC+ framework often differs between the agreement countries, the OPEC Secretariat, and the IEA.

Also, OPEC in the report notes that it kept the forecast for oil and condensate production in Russia for 2020 and 2021 at the level of 10.32 and 10.36 million barrels per day, respectively.

GLOBAL PRODUCTION

Global oil production in August fell by 10.01 million barrels per day in annual terms to 89.88 million barrels per day.

"Preliminary data show that global oil production increased in August by 1.32 million barrels per day compared to the previous month, to an average of 89.88 million barrels per day. That is 10.01 million barrels per day less compared to the same period last year," the organization points out.

According to preliminary data, oil production by non-OPEC countries in August amounted to 65.83 million barrels per day, showing an increase of 0.6 million barrels per day on a monthly basis and a decline of 4.8 million barrels per day on an annual basis.

As OPEC reported in a previous report, global oil production in July fell by 9.98 million barrels per day in annual terms-to 88.75 million barrels per day.

COMMERCIAL INVENTORY

Commercial reserves of oil and petroleum products in the OECD countries in July decreased by 4.5 million barrels on a monthly basis and by 260.6 million barrels exceeded the average for five years.

"Preliminary July data showed that the total commercial oil reserves of the OECD fell by 4.5 million barrels on a monthly basis. They amounted to 3,231 billion barrels, which is 273.7 million barrels more than at the same time a year ago, and 260.6 million barrels higher than the average of the last five years," the report says.

At the same time, commercial oil reserves for the month decreased by 9.7 million barrels to 1.58 billion barrels, oil products-increased by 5.3 million barrels to 1.651 billion barrels.

Oil reserves in the OECD countries were at a level that is 95.6 million barrels higher than the average for five years, oil reserves - 165.1 million barrels.

According to preliminary data, in August, commercial reserves of oil and petroleum products in the United States in monthly terms decreased by 24.3 million barrels to 1.428 billion barrels, which is 131 million barrels higher than the average for five years, the report notes.

In August, Novak, speaking at the opening meeting of the OPEC+ Ministerial Committee, said that in July, the volume of commercial reserves of oil and petroleum products in the OECD countries for the first time moved to a reduction after growth caused by a reduction in demand due to the COVID crisis.

You may also like: