Global oil supply tumbled by 780 thousand barrels per day in December to stand at 100.7 million barrels per day (mb/d), according to the International Energy Agency’s (IEA) report on Thursday.
The decrease came from Saudi Arabia's reduced output and a seasonal fall in biofuels production, according to the IEA's monthly oil report.
The IEA stated that OPEC crude production in December amounted to 29.44 mb/d, down 180 thousand b/d on the previous month, after Saudi Arabia restrained its output.
- Escalating tension in Middle East
Tensions in the region have heightened concern over supply security, with Iraq and the Strait of Hormuz firmly in focus.
"Even before recent clashes between Iran and the U.S. in Iraq, widespread protests had posed a threat to Iraq’s oil fields and terminals. As yet there has been no material impact on operations, despite the evacuation of some foreign workers," the IEA stated.
According to the Agency, economic assumptions supporting the report’s projections remain unchanged.
"After rising by 3% in 2019, world GDP (in purchasing power parity terms) is expected to increase at a faster rate of 3.4% in 2020," the IEA stated.
Meanwhile, in Vienna last month, 20 OPEC and non-OPEC participating countries in the oil cut pact agreed a reduction of 2.1 mb/d, deepening existing curbs by 900 thousand b/d, and including extra voluntary cuts of 400 thousand b/d from Saudi Arabia.
By Gulsen Cagatay