OPEC+ Monitoring Committee sums up results for 1H17

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    Ministers from the OPEC and other non-OPEC producers met in the Russian city of St. Petersburg on July 24.

    The ministerial committee on monitoring the fulfillment of the agreement on the reduction of oil production in OPEC + countries, following the results of the fourth meeting held for the first time in St. Petersburg, announced the results of the transaction for the first half of 2017, having estimated its level at 98 percent, according to RIA Novosti.

    The ministerial committee includes representatives of Venezuela, Kuwait, Algeria, Oman, Russia, Saudi Arabia and Secretary General of OPEC Mohammed Barkindo.

    OPEC and other oil producing countries reduced oil production by 351 million barrels in January-June, according to the committee.

    Energy Minister of Russia Alexander Novak said that the full implementation of obligations by the countries of the transaction will withdraw from the market about 200,000 barrels of oil per day.

    Thus, despite the high level of commitment to the agreement, the committee encourages all participants to implementation of the transaction by 100 percent.

    The ministerial committee will continue to cooperate with all parties individually, especially those, whose level does not yet correspond to the agreements, the statement says.

    The Saudi Energy Minister Khalid Al-Falih, in turn, suggested participants in the deal take into account export data when monitoring the implementation of the Vienna agreement, explaining this by the fact that the data on oil exports sometimes do not match the data on its production.

    The sides also mentioned situation in Libya and Nigeria, which currently enjoys the privileged right not to limit production under the Vienna agreement in connection with attacks by military groups on oil and gas facilities of these countries.

    In order to clarify the situation, representatives of Libya and Nigeria were invited to the Technical Committee on July 22 and presented their plans for oil production.

    Earlier, Nigerian Oil Minister Emmanuel Ibe Kachikwu stated that Nigeria would support limiting its oil production to a stable level of 1.8 million barrels per day against the current 1.7 million barrels per day.

    Following the meeting of the ministerial committee Khalid Al-Falih stressed that the OPEC and non-OPEC members will continue to support the process of restoring oil production in Libya and Nigeria.

    OPEC and non-OPEC producers reached an agreement in December 2016 to curtail oil output jointly and ease a global glut after more than two years of low prices. OPEC agreed to slash the output by 1.2 million barrels per day from January 1.

    Non-OPEC oil producers such as Azerbaijan, Bahrain, Brunei, Equatorial Guinea, Kazakhstan, Malaysia, Mexico, Oman, Russia, Sudan, and South Sudan agreed to reduce output by 558,000 barrels per day starting from January 1, 2017.

    The parties decided to extend the production adjustments for a further period of nine months, in May 2017.

     

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