OPEC stresses need for 2019 oil supply cuts as rivals pump more

In the report, OPEC said its oil output fell by 221,000 bpd month-on-month to 30.55 million barrels per day in February. (Reuters)
Updated 14 March 2019
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OPEC stresses need for 2019 oil supply cuts as rivals pump more

  • OPEC, Russia and other non-OPEC producers agreed in December to reduce output by 1.2 million bpd from January 1
  • OPEC said its oil output fell by 221,000 bpd month-on-month to 30.55 million bpd in February

LONDON: OPEC on Thursday cut the forecast of global demand for its crude this year as rivals boost production, building a case to extend a supply-cutting deal with Russia and other allies beyond the first half of 2019.
In a monthly report, the Organization of the Petroleum Exporting Countries said 2019 demand for its crude would average 30.46 million barrels per day, 130,000 bpd less than forecast last month and below what it is currently producing.
OPEC, Russia and other non-OPEC producers, an alliance known as OPEC+, agreed in December to reduce output by 1.2 million bpd from Jan. 1 to prevent excess supply building up. The cut lasts for six months initially.
“While oil demand is expected to grow at a moderate pace in 2019, it is still well below the strong growth expected in the non-OPEC supply forecast for this year,” OPEC said in the report.
“This highlights the continued shared responsibility of all participating producing countries to avoid a relapse of the imbalance and continue to support oil market stability in 2019.”
OPEC sources have said an extension of the supply-cutting pact beyond June is the likely scenario. The group and its allies are due to meet in April and June to discuss policy.
In the report, OPEC said its oil output fell by 221,000 bpd month-on-month to 30.55 million bpd in February. That amounts to 105 percent compliance with pledged cuts, according to a Reuters calculation, up from January’s rate.


Iraq cuts oil exports in line with OPEC deal: minister

Updated 20 March 2019
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Iraq cuts oil exports in line with OPEC deal: minister

  • An OPEC meeting in Vienna in April would assess member states’ compliance with agreed production cuts
BAGHDAD, March 14 : Iraq has cut its oil exports average to 3.5 million barrels per day in compliance with an ongoing production curb agreement, its oil minister said on Thursday.
Thamer Ghadhban told reporters an OPEC meeting in Vienna in April would assess member states’ compliance with agreed production cuts and whether to extend the curbs until the end of the year.
Iraq is committed to the deal and working to stabilize markets, he said. (Reporting by Ahmed Rasheed; Writing by John Davison; Editing by Mark Potter)