Photo: Sergei Karpukhin / Reuters
On the background of the news about reduction of oil production by OPEC the price of a barrel of Brent crude rose above $56
In January 2017, OPEC performed semi-annual plan of reducing oil production by 90%, according to the International energy Agency. According to him, the total volume of oil production by OPEC in January 2017 amounted to 32.1 million barrels./day, most members of the cartel countries to actively cut production, but three countries have even exceeded the plan.
In particular, in Angola, the level of reductions of oil production exceeded the planned figures by more than 40%, in Qatar by almost 30%, and in Saudi Arabia by 16%. Almost fully implemented semi-annual plan for the reduction of oil production in Kuwait, nearly 90% in Ecuador, nearly 80% of Algeria, about 50% — Iraq. Behind are so far only UAE (reduced production to less than 40%), Gabon (approximately 20%) and Venezuela (less than 20%).
“It seems that OPEC marked the solid beginning of the case, which should last for six months. The first reduction can definitely be called one of the most profound in the history of the attempts taken by OPEC production cuts”, — the report says the IEA.
News about friendly reduction in OPEC oil production led to a new rise in oil prices, according to Bloomberg. During Friday’s trading on the stock exchange ICE cost of a barrel of Brent crude rose to $56,38 by 1.35% above the closing level of the previous trading session.
However, interviewed by Bloomberg experts doubt that OPEC will be able to comply fully with its obligations. “Historical analysis of such limitations of the production indicates that the implementation of the plan at 100% is unlikely,” — said the head of IHS Energy Spencer Welch.
Experts doubt enhance data and increase oil production in OPEC released from the obligation to reduce Iran, Libya and Nigeria, as well as some not included in the cartel countries. Some of them joined the agreement with OPEC in January, has actively reduced the daily production, however, the United States and some other major producers continue to increase production.
According to the IEA, oil production in the United States, Canada and Brazil by the end of 2017 will grow by 750 thousand barrels./day and total production of non-OPEC countries — on 400 thousand Barr./day.
Russia in January 2017 cut daily oil production by 117 thousand barrels. at the semi-annual plan of 300 thousand According to CDU TEK, among the Russian companies most of all production in January decreased “Gazprom Neft” — compared with December 2016 is 8.1%. Production of LUKOIL for a month has decreased on 0,7%, “Rosneft” — on 0,4%. From large companies to cut production in January could not only “Bashneft”: compared to December, it rose by 0.8%, but compared to October 2016 declined 0.2%.
Minister of energy Alexander Novak explained that Russia’s oil companies cut production voluntarily as it “really beneficial” both for the companies and for the Russian budget.