Global oil output fell to 99.7 million barrels per day in February 2019: IEA

The world’s oil production continued to fall in February, largely on the back of OPEC-led supply cuts and outages in Venezuela, the International Energy Agency (IEA) said in its latest report.

Global oil output declined by 340,000 barrels a day in February 2019, month-on-month, to stand at 99.7 million barrels a day. However, the figure was still up by 1.5 million barrels a day compared with the same month a year prior, the agency said.

Last month’s declines were led by reduced crude oil output in the Organization of the Petroleum Exporting Countries–both voluntary and involuntary–of 240,000 barrels a day. That brought the cartel’s February production down to 30.68 million barrels day, its lowest level in four years.

Production in Saudi Arabia came down by 100,000 barrels a day last month, to 10.14 million barrels a day, the IEA said. The report said total Saudi crude output has fallen by 920,000 barrels a day from record highs in November.

OPEC and a group of 10 producers outside the cartel, led by Russia, agreed late last year to collectively reduce oil output by 1.2 million barrels a day from October 2018 levels, for the first half of this year.

Meanwhile, the IEA said global oil demand had slowed sharply in the fourth quarter of last year, as a result of weaker appetite in the Organization for Economic Cooperation and Development (OECD), a group of industrialized, oil-consuming nations that includes the U.S.

But as a result of strong demand growth outside the OECD, the agency kept its overall estimate for oil-demand growth for 2018 unchanged at 1.3 million barrels a day, and maintained its demand growth forecast for 2019 at 1.4 million barrels a day.

Shekhar Ghosh is consulting editor, Indoasiancommodities.com. He has edited and written for publications like Business India, Business Standard, Business Today, Outlook and many other international publications. He can be reached at shekhar.ghosh@indoasiancommodities.in.

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