Business | Oil & Gas
Opec may lower production by 1.1 million bpd by January
Opec may lower its oil production by 1.1 million barrels per day (bpd) by January, falling short of the 1.5 million bpd planned cut the producer group announced late last month, the US Energy Information Administration said on Wednesday.
- Agencies
- Published: 20:06 November 6, 2008
Washington: Opec may lower its oil production by 1.1 million barrels per day (bpd) by January, falling short of the 1.5 million bpd planned cut the producer group announced late last month, the US Energy Information Administration said on Wednesday.
"This represents about 70 per cent of the announced cut, compared to a typical 50 per cent compliance rate with previous Opec cuts," the EIA said in its weekly review.
"While compliance with past announced cuts has often decreased over time, current market conditions and an expected growth in non-Opec production may help maintain discipline among Opec members and keep Opec crude production from rising in 2009," the EIA said.
The agency said it assumes that Saudi Arabia will reduce its oil production in the first quarter of 2009 to levels consistent with its output during the first part of 2007.
"Opec surplus capacity could reach 4 million bpd by the end of 2009, nearly all in Saudi Arabia, providing Saudi decision-makers with a significant cushion that they could use to dampen the impact of future disruptions..." the EIA said.
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