Daily Management Review

OPEC's revenue from oil exports fell to a six-year low


06/23/2016


Yesterday, the Organization of Petroleum Exporting Countries (OPEC) has presented a report on situation in the oil production market at the end of 2015. The cartel said that revenues from oil exports reached $ 518 billion, which is 46% less than a year earlier, and is the lowest since 2005. The production of oil has increased in the past year. Among the countries outside OPEC, the largest production growth was observed in the US, the United Kingdom and Norway.



The OPEC Annual Statistical Bulletin notes that in 2015, oil production grew by 1.75 million barrels per day, or 2.4%, compared to the 2014 year. This is the most significant growth in production over the past decade.

However, the increase in production did not help oil exporters offset the price reductions. Revenues from oil exports of OPEC member countries totaled $ 518.2 billion, which is 45.8% less than in 2014, and is the lowest level since 2005. Moreover, OPEC has recorded current account deficit of $ 99.6 billion, while a year the organization had a surplus of $ 238 billion. OPEC says that deficit was last recorded in 1998.

Demand for oil also increased in 2015 and reached 93 million barrels a day, or 1.7%. The highest rise was noted in Asia, especially in China and India. The growth in demand for oil and petroleum products was also recorded in North America, Western Europe, Middle East and Africa.

At the end of 2015, the largest oil producers were Saudi Arabia (10.19 million barrels per day), Russia (10.11 million barrels per day) and the US (9.43 million barrels per day). The report noted that for the first time since 2005, Saudi Arabia has overtaken Russia in production, coming in first place in the world. Production growth was registered in a number of countries outside of OPEC. In addition to the United States, there was the United Kingdom, which increased oil production for the first time since 1999 - by 13.4%, or 0.1 million barrels a day. In Norway, production last year grew by 3.7%, or 0.06 million barrels per day. Total exports of OPEC countries in 2015 rose slightly, from 23.2 million barrels to 23.6 million barrels a day in 2015. 

Earlier, the International Energy Agency (IEA) issued a report which stated that Iran is stepping up oil deliveries faster than expected. The agency noted that it does not prevent the market from getting back into balance. According to the IEA projections, production in countries outside OPEC this year will fall to 56.8 million barrels a day. At the same time despite of growth in demand for oil from China, India and, to the surprise of the IEA, Russia, stocks in OECD storage tanks are being replenished at record low pace since the final quarter of 2014.

In his report, GS raised its forecast for the price of WTI crude oil from $ 38.4 to $ 44.6. Bank experts have noted that in the second half of the year, the oil reserves will be reduced faster than previously expected. However, in the first quarter of 2017, the market can return to oversupply as it will be flooded by oil from low-cost deposits. In this regard, GS analysts urged not to wait for a significant rise in prices in 2017. According to their forecasts, the price will be $ 45 per barrel in the first quarter, while oil will reach only $ 60 in the fourth quarter of 2017. 

source: cnn.com






Science & Technology

Hundreds Of Thousands Of Routers Have Been Hacked By Russians, Warns The FBI

Chinese Study Claims Heart Diseases Can Be Reduced By Having An Egg A Day

Asteroid mining: Reality or fiction?

3D Printing Used For Life Saving Kidney Transplant In Two Year Old At U.K. NHS

California to require solar panels for new homes by 2020

Blockchain Enables De Beers To Track Diamond From The Miner To The Retailer

Microsoft releases Windows 10’s April 2018 Update

DNA Sequencing Project Proposed For All Complex Life Forms On Earth By An Int’l Team

Facebook may start production of its own microprocessors

Long-Term Alcohol Monitoring Could Be Possible With A New Injectable Chip Developed By U.S. Researchers

World Politics

World & Politics

The British government is trying to unblock money to pay off the national debt

Ministerial Visit From India To North Korea Aimed At Strengthening Ties

What countries are the biggest losers of Trump’s Iran decision?

World's Oldest Elected Prime Minister Is Malaysia’s 92 Year Old Mahathir Mohamad

Why Is U.S. Pulling Out Of The Iran Deal A Big Deal For The World

Merkel, Macron, May call on Iran to adhere to the nuclear deal

Arab Region Driven In ‘Wrong Direction’ In Last 10 Years, Say Arab Your: Survey

German doctors demand a tax on sugar