Compliance with the Vienna Agreement, envisaging oil output cuts has eased to 97 percent in July as output cuts were relaxed, the International Energy Agency (IEA) said in its August Oil Market Report.
Global oil supply rose by 300,000 barrels per day in July to 99.4 million barrels per day, 1.1 million barrels per day above a year-ago, according to the report.
The IEA estimates that non-OPEC production is expected to grow by 2 million barrels per day in 2018 and by 1.85 million barrels per day next year.
“OPEC crude oil output was steady in July, at 32.18 million barrels per day. An unexpected decline in Saudi Arabian supply was offset by higher production from the UAE, Kuwait and Nigeria. OPEC compliance was unchanged in July at 121 percent,” said the report.
Global refinery throughputs in 2H18 are expected to be 2 million barrels per day higher than in 1H18, according to the IEA,
“Due to high summer demand, refined products stocks will draw before building again in 4Q18. The outlook will be heavily influenced by Iranian crude flows and resulting changes to crude prices and margins,” said the report.
In December 2016, at a meeting of oil producers in Vienna, 11 non-OPEC member countries, including Azerbaijan, agreed to cut oil production by a total of 558,000 barrels a day. The agreement was concluded for the first half of 2017 and was extended until the end of the first quarter of 2018 at a meeting on May 25, 2017.
At the last OPEC meeting in Vienna, the agreement was again extended until the end of 2018. Azerbaijan supported the decision.