The Strategist

10 countries that will determine the fate of the oil market

11/13/2017 - 14:24

OPEC and Russia called on the world's leading oil producers, both member and non-members of the cartel, to support an agreement to limit production to the end of 2018. It is expected that OPEC will announce a consensus at the next meeting, which will be held at the end of November. It's time to remember the top 10 oil-producing countries, on which the future of the agreement depends.

10. Norway

In August, Norway produced 1.57 million barrels per day - compared with 1.62 million in July. This is stated on the website of JODI, Joint Organization Data Initiative.

9. Angola

Angola, a member of OPEC and the second largest oil producer in Africa, in August produced 1.68 million barrels per day. The country has been increasing production for the third month in a row.

8. Mexico

In August, Mexico produced 1.94 million barrels per day: the country for the third month in a row reduces production. In the run-up to the OPEC meeting, the Deputy Energy Minister said that the cartel had not consulted with the authorities on the reduction of production.

7. Nigeria

According to JODI estimates, oil production in August was about 1.99 million barrels per day. The largest producer of Africa said that it will consider joining the agreement only if its production stabilizes above the August level. Earlier, OPEC granted Nigeria and Libya an opportunity not to reduce production due to internal conflicts that caused a significant decline in production.

6. Venezuela

In August, Venezuela produced 2.1 million barrels per day (less than the previous month). In early October, Venezuelan Oil Minister Eulogio del Pino stated that OPEC and a coalition of non-cartel producers would try to attract 16 more oil-producing countries to strengthen efforts to restore balance in the market.

5. Canada

According to the data published by JODI, in August Canada produced 3.12 million barrels per day (slightly less than in the previous months).

4. Iraq

Iraq, which is the second largest producer of OPEC, in August produced 4.38 million barrels per day (compared with 4.4 million in July). According to Baghdad, the country has not yet brought production to the level planned last winter.

3. USA

JODI says that in August the US produced 9.34 million barrels per day, having increasing production for the third month in a row. OPEC Secretary General Mohammed Barkindo urged US oil shale producers to support plans to reduce production in order to balance the oil market. According to Reuters, North American shale drilling rigs accounted for 10% of the growth in all US production this year - despite the fact that OPEC and other countries, including Russia, cut shipments to support prices.

2. Saudi Arabia

In August, the main member of OPEC, Saudi Arabia, produced 9.95 million barrels per day, the first time since May, cutting production to below 10 million barrels. In general, the kingdom accounted for most of the cuts in the entire OPEC.

1. Russia

In December 2016, Russia bypassed Saudi Arabia and became the world's largest oil producer. In August, oil production in the country amounted to 10.34 million barrels per day (a slight decrease compared to the previous month). OPEC cooperates with large producers - and primarily with Russia - to reduce world production by 1.8 million barrels a day. The goal of the cartel is to reduce global oil reserves in order to keep prices down.