Russia+ Group cutting more production
Posted: Sun Mar 19, 2017 2:30 pm
Eleven non-OPEC members ("Russia+ Group") that are a part of a global deal to cut output in order to increase prices made good on 65% of the promised cuts in February, sources told Reuters. However, the figure is still behind the greater cuts made by OPEC itself.
IEA, in their March 15th "Oil Market Report" said OPEC members have cut 91% of the production cuts per their agreement announced on November 30, primarily because Saudi Arabia has cut more than their quota in the agreement.
OPEC and non-OPEC members agreed to slash production by 1.8 million barrels per day beginning Jan. 1 of this year. Non-member Russia is planning to increase its compliance with the agreement by announcing it will cut the full amount it promised by the end of April. Russia pledged to eliminate a total of 300,000 bpd.
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IEA forecasts that refiners will increase draws from crude oil storage by 1.9 million barrels per day from Q1 to Q2 as they ramp up gasoline and diesel fuel production ahead of the summer driving season.
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The U.S. is the only non-OPEC country to generate significant oil production growth in 2017 (~600,000 BOPD per IEA). Production declines this year in China and Mexico will offset all other non-OPEC production growth.
IEA, in their March 15th "Oil Market Report" said OPEC members have cut 91% of the production cuts per their agreement announced on November 30, primarily because Saudi Arabia has cut more than their quota in the agreement.
OPEC and non-OPEC members agreed to slash production by 1.8 million barrels per day beginning Jan. 1 of this year. Non-member Russia is planning to increase its compliance with the agreement by announcing it will cut the full amount it promised by the end of April. Russia pledged to eliminate a total of 300,000 bpd.
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IEA forecasts that refiners will increase draws from crude oil storage by 1.9 million barrels per day from Q1 to Q2 as they ramp up gasoline and diesel fuel production ahead of the summer driving season.
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The U.S. is the only non-OPEC country to generate significant oil production growth in 2017 (~600,000 BOPD per IEA). Production declines this year in China and Mexico will offset all other non-OPEC production growth.