OPEC crude oil production falls

12 March 2020 11:27 (UTC+04:00)

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In February, OPEC-13 crude oil production fell by 546,000 barrels per day month-on-month to average 27.77 million barrels per day, according to secondary sources, Trend reports with reference to OPEC’s data.

As a result, preliminary data indicates that global oil supply decreased in February by 0.29 mb/d m-o-m to average 99.75 mb/d, and was up by 0.78 mb/d y-o-y, the carel said in its Monthly Oil Market Report (MOMR) for March.

OPEC NGLs and non-conventional liquids production in 2019 is estimated to have grown by 0.04 mb/d to average 4.80 mb/d.

In 2020, OPEC NGLs are forecast to grow by 0.03 mb/d y-o-y to average 4.83 mb/d.

The share of OPEC crude oil in total global production decreased by 0.5 pp to 27.8 percent in February compared with the previous month. Estimates are based on preliminary data from direct communication for non-OPEC supply, OPEC NGLs and non-conventional oil, while estimates for OPEC crude production are based on secondary sources.

During the seventh OPEC and non-OPEC Ministerial Meeting held in December 2019, it was decided for an additional voluntary production adjustment of 500,000 barrels per day over levels agreed in the 175th Meeting of the OPEC Conference and 5th OPEC and non-OPEC Ministerial Meeting, leading to a total adjustment of 1.7 million barrels per day.

In view of the current fundamentals and the consensus on market perspectives, the 178th (Extraordinary) Meeting of the Conference of the Organization of the Petroleum Exporting Countries (OPEC), held in Vienna, Austria, on 5 March 2020, decided to recommend to the 8th OPEC and non-OPEC Ministerial Meeting to extend the adjustment levels agreed at the 177th Meeting of the Conference and the 7th OPEC and non-OPEC Ministerial Meeting for the remainder of the year. It also agreed to recommend to the 8th OPEC and non-OPEC Ministerial Meeting a further adjustment of 1.5 mb/d until 30 June 2020 to be applied pro-rata between OPEC (1.0 mb/d) and non-OPEC producing countries (0.5 mb/d) participating in the Declaration of Cooperation.

However, during the meeting held March 6, OPEC+ failed to reach any agreement on extension of the deal or deepening the cuts further, which led to a significant decline in oil prices.

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