OPEC reduces oil output

The price of oil can increase up to 50 USD per barrel

Baku. 16 March. REPORT.AZ/ OPEC crude production decreased by 175 thousand barrels per day (b/d) to average 32.28 million b/d in February, according to the organization's latest report released on Monday.

Report informs referring to Kommersant newspaper, global oil supply fell by 210 thousand b/d to average 95.73 million b/d (mb/d) in February.

"The share of OPEC crude oil in total global production decreased slightly to 33.7 percent in February compared with the previous month," the report estimates.

Last month, “crude oil output decreased mostly from Iraq, Nigeria and the United Arab Emirates, while production increased in Iran, Saudi Arabia and Kuwait," the report shows.

After the lifting of international sanctions, Iran has steadily increased its production capacity, reaching 3.13 mb/d of oil in February, an increase of 187 thousand b/d from January, according to the report.

In February, output in Saudi Arabia rose by 14 thousand b/d and by 13 thousand b/d in Kuwait

In Iraq, production fell by 263 thousand b/d. In Nigeria production dropped by 94 thousand b/d and by 49 thousand in the UAE.

"In 2016, the demand for OPEC crude is projected at 31.5 mb/d, 0.1 mb/d lower than the previous report and around 1.8 mb/d higher than last year," OPEC says.

In February, non-OPEC supply declined by 0.04 mb/d, the report shows.
"In 2016, non-OPEC oil supply is forecast to contract by 0.70 mb/d to average 56.39 mb/d."

Global oil demand is expected to average 94.23 mb/d, with a growth of 1.25 mb/d in 2016.

World oil demand growth in 2015 averaged 92.92 mb/d.

The major oil producers will meet on April 17 in Doha, Qatar to freeze output.

Analytical Group of Report News Agency do not expect a major decision at this meeting. The price of oil can increase up to 50 USD per barrel.

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