Global Oil Output Up by 690,000 Mln Bpd in June, IEA Report Says

MOSCOW (Sputnik) - The global oil production in June increased by 690,000 barrels per day and reached 99.5 million barrels per day due to Russia’s "resilience" despite sanctions imposed against it, The International Energy Agency (IEA) said in a report on Wednesday.

"Russia’s resilience despite international sanctions bolstered world oil supply in June and helped offset outages elsewhere due to operational issues and civil unrest. Global output rose by 690 kb/d to 99.5 mb/d during June, as a surprising increase from Russia along with higher US and Canadian flows more than offset steep maintenance-related losses from Kazakhstan and smaller declines from other producers," the report read.

The OPEC+ countries fulfilled the oil output cut deal by 314% in June, the International Energy Agency (IEA) said.

According to IEA, Russia’s obligations were met by 372%, the compliance level of OPEC was 229% and non-OPEC countries fulfilled the deal by 461%.

The International Energy Agency (IEA) has lowered its forecast on the global oil demand grown in 2022 to 99.2 million barrels per day, according to report.

The IEA said that "soaring fuel costs" in the OECD counties is starting to "moderate" the oil demand growth. In addition, the latest data showed "weaker-than-expected [oil] consumption in all three major regions".

"As a result, we have modestly trimmed our outlook for 2022, with global oil demand growing 1.7 mb/d to 99.2 mb/d. Demand is projected to increase by 2.1 mb/d, to 101.3 mb/d in 2023, led by continued strong growth in non-OECD countries," the report read.

The production of crude oil and condensates in Russia unexpectedly increased by 490,000 barrels per day in June and reached 11.07 million barrels per day, the International Energy Agency (IEA) said.

"During June, Russia once again surprised to the upside, delivering the world’s single biggest supply increase as higher domestic consumption far offset lower exports. Total crude oil, condensates and NGLs rose 490 kb/d to reach 11.07 mb/d, down just 330 kb/d from 'pre-invasion levels," the report read, adding that the IEA expects the production to "ease" in July as the EU’s embargo on Russian oil "is phased in".

According to the IEA, Russian oil exports in June fell to 7.4 million barrels per day, which is the lowest rate since August 2021, while oil export revenues increased to $20.4 billion, which is 40% above Russian oil export average revenue in 2021.

"Russian oil exports in June fell by 250 kb/d m-o-m to 7.4 mb/d, the lowest since August 2021. This time, the decline was led by crude oil, while product shipments were relatively stable at 2.4 mb/d. Meanwhile, export revenues increased by $700 million m-o-m on higher oil prices, to $20.4 billion, 40% above last year’s average," the report read.

The IEA also said that global oil demand had reduced by 1.7 million barrels per day to 99.2 million barrels per day due to the spike in energy prices, adding that growing Chinese oil demand and "strong growth trajectory" of non-OECD states would drive global oil demand in 2023 up by 2.1 million barrels per day.

"Higher prices and a deteriorating economic environment have started to take their toll on oil demand, but strong power generation use and a recovery in China are providing a partial offset. Global oil demand growth has been marginally reduced to 1.7 mb/d in 2022, reaching 99.2 mb/d. A further 2.1 mb/d gain is expected in 2023, led by a strong growth trajectory in non-OECD countries," the IEA added.