OPEC’s average output has fallen 1.92 million bpd since the beginning of 2019

Abu Dhabi, July 17, 2019 WAM

The Organization of the Petroleum Exporting Countries (OPEC), posted an average rate of 6.4 percent and 1.92 million barrels per day (bpd) in the first half of 2019 compared with 2018 in a move described as consistent with the organization’s earlier decision to maintain market balance.

The OPEC decided in coordination with the largest independent producers during its meeting in Vienna in early July to renew the agreement to reduce production for another 9 months by 1.2 million barrels per day of which 800 thousand barrels will be committed by the members of the Organization and the rest will be borne by non-members of the producers.

The decline in production comes in line with earlier forecasts by the Organization of the Organization of Petroleum Exporting Countries that the average production of members will fall to 30.83 million bpd in 2019.

Despite the continued agreement to reduce production, this did not reflect positively on the prices of the OPEC basket, which fell its average price to 65.48 dollars at the end of May this year compared with an average of 68.43 dollars in 2018.

OPEC’s average monthly production was 29.95 million barrels per day (bpd) at the end of the first half of this year compared to 31.864 million in 2018.

On a quarterly basis, the Organization’s average production fell to 30.473 million barrels per day, according to figures released by the organization from January to March 2019.

It is noteworthy that the studies issued by the Organization expected the average production in the year 2019 to 30.83 million barrels per day.