The non-OPEC countries participating in the agreement to reduce oil production in January fulfilled the terms of the deal by only 25% due to increased production in Kazakhstan and low rates of reduction in Russia and Azerbaijan, according to the February report of the International Energy Agency (IEA), TASS reports.
According to the IEA estimates, in the first month of the year, OPEC countries reduced production by 86% of the plan. Total OPEC+ countries in January produced 44.66 million barrels per day.
In January, Kazakhstan increased its production (by 50 thousand barrels per day instead of a decrease by 40 thousand barrels per day) - to 2.08 million barrels per day. Low rates of oil production also reduced Russia and Azerbaijan. However, under the terms of the agreement, Russia may reduce production gradually.
The IEA expects that the growth in world oil demand in 2019 will be 1.4 million barrels per day versus 1.3 million barrels per day in 2018, follows from the agency report.
"Demand on the oil market is supported by low prices and the implementation of new petrochemical projects in the USA and China. Nevertheless, the slowdown in the global economy will restrain further growth in demand," IEA said.
At the same time, the agency raised its estimate for the growth in deliveries from non-OPEC countries in 2019 to 1.8 million barrels per day against 1.5 million barrels per day previously forecast. According to IEA experts, the revision of the forecast growth in supply in the oil market is primarily associated with a higher level of oil production in the United States.