Denmark Oil Production in North Sea Unaffected by OPEC Output Freeze Deal

OPEC agreement to freeze daily oil output will not cause significant changes as to the level of production of oil and gas or the level of activity in the Danish part of the North Sea, according to the Danish Energy Agency spokesman Ture Falbe-Hansen.

MOSCOW (Sputnik) — No significant changes are expected in oil production in the Danish part of the North Sea amid OPEC agreement to freeze daily oil output, the Danish Energy Agency spokesman Ture Falbe-Hansen told Sputnik on Friday.

On Wednesday, OPEC oil producing countries agreed a preliminary deal on the sidelines of an international energy forum in Algiers, Algeria. The output ceiling was set at 32.5-33 million barrels a day for the whole cartel. The date of oil output freeze is expected to be presented at the cartel's upcoming meeting in November. OPEC also decided to establish a technical committee to identify the production volume of individuals member countries.

"We do not expect that the OPEC agreement will cause significant changes as to the level of production of oil and gas or the level of activity in the Danish part of the North Sea," Ture Falbe-Hansen said.

Denmark has been producing oil from the Danish part of the North Sea since 1972. In 2015, more than 55 platforms carried on production in 19 oil and gas fields in the Danish part of the North Sea.

Global oversupply and stagnating demand have caused oil prices to plunge from $115 per barrel in June 2014 to less than $30 per barrel in January 2016. Prices recovered amid Nigerian, Canadian and Venezuelan output outages and growing demand in May, reaching a peak of over $50 per barrel in early June.

Crude prices are currently fluctuating between $40 and $50 per barrel.