13 September, 2017
However, that was still 1.2 million barrels a day more than during the.
LONDON-Global oil supply fell in August for the first time in four months, a result of Hurricane Harvey, declining OPEC output and summer production maintenance, the International Energy Agency said Wednesday.
OPEC and a number of other producers including Russian Federation agreed previous year on production cuts to ease a global supply glut, but prices haven't risen much above US$50 per barrel as compliance has been a problem.
Azerbaijan, in turn, reduced production by 78 thousand barrels per day with a quota of 54 thousand barrels per day. For 2018, the IEA is predicting growth of 1.4 mb/d, or 1.4 per cent.
The IEA said OPEC crude production fell in August for the first time in five months, thanks to both cuts in production as well as a flare-up in turmoil in Libya disrupting output.
"Output decreased by 210,000 b/d from a 2017 high to 32.67 million b/d". Compliance levels in August hit 82 per cent compared with 75 per cent. "For the year as whole their compliance rate is 86 percent", said the report. The issue of extending the deal is now on the agenda of the participants. He also noted that the alliance is considering all measures, including new cuts.
Stockpiles of refined fuels in developed nations were close to their five-year average in July, and could fall to or below this level "very soon", according to the IEA.
Oil prices rose after the report was published, with Brent crude adding 10 cents to US$54.37 per barrel around 0820 GMT.
Speaking about Libya's participation in the agreement the minister noted that the situation is the same as with Nigeria. Still, the IEA's report shows producers are having some success in their goal of reducing bloated oil inventories back to typical levels.
OPEC and its partners made a decision to extend its production cuts till March 2018 in Vienna on May 25, as the oil cartel and its allies step up their attempt to end a three-year supply glut that has savaged crude prices and the global energy industry.