Home / Energy/ OPEC oil production falls as S. Arabia slashes output

OPEC oil production falls as S. Arabia slashes output


Comments / {{hitsCtrl.values.hits}} Views / Thursday, 14 February 2019 02:02

Facebook

A general view shows Ras Tanura’s oil production plant near Dammam in Saudi Arabia’s eastern province. Global oil cartel Opec said Tuesday it sharply reduced crude oil production last month, after heavyweight Saudia Arabia slashed output and exports fell in crisis-hit Venezuela. 

PARIS, (AFP): Global oil cartel OPEC said Tuesday it sharply reduced crude oil production last month, after heavyweight Saudi Arabia slashed output and exports fell in crisis-hit Venezuela. 

In its monthly report, OPEC said it produced 797,000 fewer barrels per day in January than in the previous month, a decrease in line with the cartel’s pledge to curb output in a bid to boost sagging prices. 

The decrease by the group of 14 producer countries – which has long manipulated oil output to influence global prices in members’ favour – brought total production to 30.81 million barrels per day in the month, the report said citing secondary sources. 

The reduction came mostly from the world’s top oil exporter and OPEC kingpin Saudi Arabia, which cut 350,000 barrels per day, followed by the United Arab Emirates and Kuwait. 

Oil production in Venezuela, which has been rocked by a crippling economic crisis, spiralling political turmoil and US sanctions, meanwhile sank by 59,000 barrels per day. 

The cartel’s scale-back was in line with an agreement by OPEC and non-OPEC members in December to trim production by 1.2 million barrels a day from January 1. OPEC members vowed to cut 800,000 barrels a day of that amount, so January’s figures fell just 3,000 barrels short of that commitment. The cartel has joined forces with 10 non-member nations including Russia to trim output to avoid a repeat of the 2014 crash when prices dove to below $30 a barrel – down from over $100 – due to a glut in supplies and weakening global demand. 

While remaining volatile, oil prices have rallied to just above $60 a barrel and jumped more than a dollar after the OPEC production update. That figure remains far below the $85 a barrel hit in early October before prices slid back. 

The Tuesday report estimated that non-OPEC members would produce more oil than expected this year, particularly in the Gulf of Mexico and the United States. 

 


Share This Article

Facebook Twitter


DISCLAIMER:

1. All comments will be moderated by the Daily FT Web Editor.

2. Comments that are abusive, obscene, incendiary, defamatory or irrelevant will not be published.

3. We may remove hyperlinks within comments.

4. Kindly use a genuine email ID and provide your name.

5. Spamming the comments section under different user names may result in being blacklisted.

COMMENTS

Today's Columnists

Revitalising the tourist inflows

Wednesday, 22 May 2019

Easter Sunday 21 April terror acts have dealt a very heavy blow on tourism. The inflow has dried up for the moment while it can be presumed that forward selling too may have become sluggish. It is noted that Government has introduced a series of meas


Truth has now arrived, and falsehood has perished

Wednesday, 22 May 2019

“And say: Truth has now arrived, and Falsehood has perished: for Falsehood by its very own nature is bound to perish.” Holy Quran: Chapter 17 Verse 81. Every discussion, debate and discourse that we see and hear over the audio – visual and prin


Afghan refugees face Jaffna’s hostility: These Sri Lankans are crazy

Wednesday, 22 May 2019

Abbas Ahmadi, an IT specialist, was rather high in the Afghan provincial civil service. He is of Hazara ethnicity and persecuted by the majority Pashtuns who ironically dominate the ruling faction as well as the rebelling Taliban.The Hazaras are inpa


One month gone: No charge on over 200 Catholics murdered

Wednesday, 22 May 2019

It’s been one month since the murder of around 300 innocent Catholic children and parents but no has yet been charged for the biggest negligence of duty that Sri Lanka has seen in recent history. The President and Prime Minister have both denied a


Columnists More