OEF Rapid Review Articles
Although countries saying they’ll freeze oil production account for 25% of global supply, conditions of their Feb. 16 agreement and history offer little reason to expect much change in an oversupplied market. Of four countries agreeing not to raise production beyond January levels, Saudi Arabia, Russia, Qatar, and Venezuela, only one has enough spare capacity to do so meaningfully. Saudi Arabia produced at an average rate of 10.19 million barrels a day in January, according to the International Energy Agency. That was up slightly from December but still 2.05 million barrels a day less than IEA’s estimate of the kingdom’s production capacity. The other two members of the Organization of Petroleum Exporting Countries in the agreement produced at or near capacity rates in January: Venezuela at 2.37 million barrels a day and Qatar at 680,000 barrels a day.
Oil & Gas Journal Digital Magazine
LINK TO THE SOURCE ARTICLE:
Oil production freeze clouded by conditions, history
LINK TO THE SOURCE ARTICLE:
Oil production freeze clouded by conditions, history