OPEC oil production will further rise reaching 32.9 million barrels per day in 2016 and 33 million barrels per day in 2017, according to the forecasts of the US JP Morgan bank.
Saudi Arabia’s oil output is expected by JP Morgan analysts at 10.3 million barrels per day in 2016 and 2017.
“Saudi Arabian output is increased marginally from previous estimates, following the collapse of the Doha talks, which were the only adjustments made prior to the meeting, analysts said in their monthly Oil Market report, obtained by Trend. Additional gas supplies this year are expected from the Wasit gas processing facility following the start of the Hasbah and Arabiyah offshore gas fields.”
The meeting of oil producers in Doha last week ended without reaching any agreement. The talks on oil output freeze collapsed after Saudi Arabia surprised the group by reasserting a demand that Iran also agrees to cap its oil production.
“While we remain cautious on the speed of the recovery in Iran, Saudi Arabia’s last minute insistence on all OPEC members’ participation in the agreement to cap production at January levels in our mind reveals a dysfunctional approach to the producer negotiations that may have damaged other nations’ willingness to participate in further initiatives,” JP Morgan’s analysts said.
OPEC’s total oil output was 32.25 million barrels a day in March 2016, which is by 15,000 barrels more than in February, according to OPEC’s recent report. The official quota for the OPEC oil output is 30 million barrels per day.