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IEA: OPEC+ Fulfilled The Deal By 97% In August, Russia, By 98%

IEA: OPEC+ Fulfilled The Deal By 97% In August, Russia, By 98%

The OPEC+ Alliance in August fulfilled the terms of a new deal to reduce production by 97%, while Russia fulfilled its obligations by 98%, and Saudi Arabia — by 103%, according to a September report by the International Energy Agency (IEA).

Saudi Arabia increased oil production in August by 500 thousand barrels per day compared to June, up to 8.94 million barrels per day. Thus, the country exceeded its obligations to reduce oil production in August by 3%.

Russia in August increased production, excluding condensate compared to July by 420 thousand barrels per day, up to 9.04 million barrels per day. Thus, the Russian Federation underperformed the OPEC+ deal by 2%.

OPEC oil production in August increased by 830 thousand barrels per day compared to July-to 24.51 million barrels per day.

"Production (OPEC) was at the level of 24.51 million barrels per day, an increase of 830 thousand barrels per day on a monthly basis, and a decrease of 4.8 million barrels per day on an annual basis," the report says.

Excluding Iran, Libya, and Venezuela, which were exempted from additional cuts under the OPEC+ deal, OPEC production in August was 22.07 million barrels per day. Thus, the level of implementation of the agreement was 95%.

The IEA forecasts oil demand at the end of this year at the level of 2013, i.e., 91.7 million barrels per day, due to the revision of this forecast — now it expects a drop of 8.4 million barrels per day compared to last year.

"By the end of 2020, demand is expected to fall by 8.4 million barrels per day compared to 2019, slightly more than the previous month's forecast. The demand indicator of 91.7 million barrels per day will return it to the level of 2013, " the report says.

The IEA also slightly improved its forecast for global oil demand in 2021, and now expects an increase of 5.5 million barrels per day.

"We expect oil demand... to grow by 5.5 million barrels per day in 2021," the report said. Thus, by the end of 2021, demand may reach 97.1 million barrels per day.

In a previous report, the IEA forecast demand growth of 5.2 million barrels per day in 2021.

At the same time, the Agency adds that demand in 2021 is likely to remain below the level of 2017.

In an August report, the organization predicted a drop in demand for the year at the level of 8.1 million barrels per day, to 91.9 million barrels per day.

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