OPEC improves U.S. oil production forecast in 2017 by 180,000 bpd, reduces Russian forecast
MOSCOW. Feb 13 (Interfax) - OPEC has raised its oil production forecast for the U.S. in 2017 by 180,000 barrels per day due to higher crude prices, the cartel said in its Monthly Oil Market Report for February.
One month before, OPEC forecast that U.S. production would average 13.7 million bpd in 2017 compared with 13.63 million bpd in 2016. The new forecast calls for U.S. production to rise to 13.88 million bpd from 13.65 million bpd.
In all OPEC expects production in non-OPEC countries to rise by 240,000 bpd this year, twice the increase it forecast last month "due mainly to higher expectations for the U.S. on the increase in prices," it said.
The previous report said overall non-OPEC production would rise from 57.14 million bpd to 57.26 million bpd. The corresponding figures in the latest report are 57.2 million bpd and 57.44 million bpd.
OPEC forecast a slightly bigger decline in Russian production in 2017, from 11.09 million bpd to 11.03 million bpd compared with the previous month's forecast decline from 11.08 million bpd to 11.05 million bpd.
The review of the results for 2016 took place mainly due to higher than expected growth of production in the final quarter by the United States, Canada, Norway, Russia and China which was slightly offset by lower estimates for Kazakhstan, Australia and Malaysia.
Preliminary data shows that world oil production in January 2017 fell by 1.29 million bpd to 95.75 million bpd in comparison to the previous month, and fell by almost 460,000 barrels per day in comparison to the same month in 2016.
OPEC paid special attention to Russia in its report, since Russia is the biggest non-OPEC country that has agreed to cut oil production. Russia's quota to cut production by 300,000 bpd should be reached by April or May.
Russian oil production in January fell by 120,000 bpd to 11.19 million bpd, OPEC said. In Q4 2016, the country produced 400,000 more bpd than the year before.