Global oil production fell by 340 thousand barrels per day (b/d) month-on-month (m-o-m) in February to 99.75 million barrels per day (mb/d) as the Organization of the Petroleum Exporting Countries (OPEC) and non-OPEC cuts deepened, according to data of the International Energy Agency (IEA) on Friday.
According to the IEA's Oil Market Report, losses in Venezuela and lower output from Saudi Arabia and Iraq cut OPEC crude production in February to its lowest in four years, by 240 thousand b/d m-o-m to 30.68 mb/d.
Struggling after the imposition of U.S. sanctions in January, Venezuela's production fell by 100 thousand b/d in February to 1.14 mb/d, down 410 thousand b/d on a year ago.
In February, Saudi Arabia's output was down for the third successive month, this time by 100 thousand b/d m-o-m to 10.14 mb/d.
'March output could be lower still with Venezuela's oil sector crippled by a massive power outage and if Saudi Arabia follows through on announced supply cuts,' the agency said.
Production in Iraq, including the Kurdish Regional Government (KRG), fell by 70 thousand b/d in February to 4.68 mb/d, well above its OPEC and non-OPEC supply target.
Moreover, output from Iran edged up to 2.74 mb/d in February by 20 thousand b/d, but was down 1.1 mb/d compared to when U.S. sanctions were announced in May, according to the report.
Growth in demand in 2019 is expected to be 1.4 mb/d, unchanged from the IEA's last report.
'Growth in the Americas in 2019 will continue to be supported by petrochemical demand in the U.S. and should rise by 0.4 mb/d year-on-year. Asia Pacific growth will continue at 0.7 mb/d, while Middle East oil demand will reverse its 2018 decline and post a modest increase of 0.1 mb/d,' the agency said.
By Firdevs Yuksel