Azernews.Az

By Aynur Jafarova

Azerbaijan's oil production will decrease by 40,000 barrels per day (bpd) to 0.87 million bpd in 2013, according to OPEC's January oil market report, published on Wednesday.

This figure represents a downward revision of 15,000 bpd from the previous forecasts. The revision was partly carried over from updates to the 2012 estimate.

According to OPEC's forecasts, the highest level of Azerbaijan's oil production in 2013 will be observed in the first quarter - at 0.9 million bpd. In the second quarter production will amount to 0.86 million bpd, in the third quarter - 0.85 million bpd and in the fourth quarter - 0.87 million bpd.

OPEC's estimates show that in 2012 Azerbaijan's oil production amounted to 0.91 million bpd with 0.88 million bpd in the fourth quarter.

According to BP, the proven oil reserves of Azerbaijan amounted to 7 billion barrels as of early 2011.

The main volume of oil produced in Azerbaijan falls to the offshore field Azeri-Chirag-Guneshli. This area produces Azeri Light oil with a sulfur content of 0.15 percent (35 degrees API).

According to the OPEC forecasts, total oil supply in Former Soviet Union (FSU) is projected to increase by 10,000 bpd in 2013 to average 13.41 million bpd.

Russia's oil supply is expected to increase by 50,000 bpd in 2013 to average 10.42 million bpd, the report said.

On a quarterly basis, Russian supply is projected to average 10.43 million bpd, 10.42 million bpd, 10.42 million bpd and 10.42 million bpd respectively.

The report noted that Kazakhstan's oil supply is predicted to increase by 70,000 bpd over the previous year to average 1.66 million bpd in 2013. The expected growth in 2013 is supported by the anticipated start-up of the Kashagan field in the late second quarter.

Non-OPEC oil supply is predicted to increase by 0.93 million bpd and average 53.92 billion bpd in 2013.

The current supply expectation indicates an upward revision of 85,000 bpd to total non-OPEC supply, while anticipated growth was revised up by 30,000 bpd from a month earlier.

According to OPEC forecasts, oil supplies by OECD (Organization for Economic Cooperation and Development) countries will increase by 0.52 million bpd to 21.53 million bpd in 2013.

Oil production in the U.S. is projected at 17.23 million bpd in 2013 compared to 16.62 million bpd in 2012.

OPEC expects Middle East oil supply to decline by 0.02 million bpd to 1.5 million bpd in 2013.

In 2012, according to OPEC's forecasts, non-OPEC supply amounted to 52.98 million bpd in 2012.

According to the report, OPEC oil production decreased by 0.46 million bpd to 30.37 million bpd in December, 2012.

Oil output saw an increase from Nigeria and Angola while production fell in Saudi Arabia, Iraq, and Iran, the report said.

OPEC oil production, not including Iraq, stood at 27.35 million bpd in December, a decrease of 0.27 million bpd over the previous month.

According to OPEC's forecasts, world oil demand will increase by 0.76 million bpd to 89.55 million bpd in 2013.

"The forecast for world oil demand growth in 2013 remains unchanged at 0.8 million bpd, in line with the growth seen in the previous year. This year, the impact of economic turbulence on oil demand should be considerably milder than in previous years," the report said.

According to OPEC's forecasts, oil demand in OECD countries this year is expected to decrease by 0.21 million bpd to 45.9 million bpd.

Developing countries' oil demand is expected to increase by 0.53 million bpd to average 28.46 million bpd in 2013.

OPEC's estimates show global oil demand stood at 88.8 million bpd in 2012.