OPEC revises down 2017 non-OPEC oil supply

According to preliminary and estimated data, total non-OPEC supply in the fourth quarter of 2016 decreased by 0.57 mb/d over the same period a year earlier.

During the second half of 2016, non-OPEC supply decreased by 0.83 mb/d compared with the same period the previous year, said the cartel.

For 2017, non-OPEC oil supply is now projected to grow by 0.12 mb/d, down by 0.18 mb/d from the December report due to lower expectations for Russia, Kazakhstan, China, Congo and Norway, to average 57.26 mb/d.

The revision was driven partially by the non-OPEC decision on production adjustments in the first half of the year. In contrast, the US forecast for 2017 was revised up by 0.23 mb/d, following higher rig counts and increased cash flows.

During the Vienna meeting held Nov.30, OPEC members decided to implement a new OPEC-14 production target of 32.5 million barrels per day.

Later, non-OPEC countries agreed to cut the oil output by 558,000 barrels per day during the meeting held Dec.10.

Eleven non-OPEC countries agreed to reduce the oil output: Azerbaijan, Kingdom of Bahrain, Brunei Darussalam, Equatorial Guinea, Kazakhstan, Malaysia, Mexico, Sultanate of Oman, the Russian Federation, Republic of Sudan, and Republic of South Sudan.

OPEC and non-OPEC countries pledged to implement the reached deal from Jan.1, 2017.