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EIA decreases previously forecast oil extraction volume in Kazakhstan for 2020

EIA decreases previously forecast oil extraction volume in Kazakhstan for 2020

Nur-Sultan, March 30 - Neftegaz.RU. Kazakhstan will produce 2.02 million barrels of oil and other liquids per day in 2020, Trend reports with reference to the March Short-term Energy Outlook (STEO) of US Energy Information Administration (EIA).

According to the EIA’s forecasts, this figure decreased from 2.03 million barrels per day in the previous report. "Kazakhstan has been producing 2.03 million, 1.85 million, 1.96 million and 2.02 million barrels of petroleum and other liquids per day during the 1st, 2nd, 3rd and 4th quarters of 2019, respectively," the report said.

"EIA also estimates that Kazakhstan’s petroleum production will be 2 million barrels per day in 1Q2020 (2.03 million in the last report), 1.98 million barrels per day in 2Q2020 (1.99 million in the last report), 2.02 million barrels per day in 3Q2020 (2.03 million), and 2.06 million barrels per day in 4Q2020 (2.06 million in the last report)," the statement said.

EIA said that the expected oil extraction volume of Kazakhstan in 2021 is 2 million barrels a day. EIA reports that Kazakhstan’s daily petroleum and other liquids production stood at 1.96 million barrels as of 2018.

On the morning of March 9, 2020, Brent crude plunged 25 % dropping to its lowest since February 2016 and recording the biggest one-day percentage declines since Jan. 17, 1991. Trading volumes in the front-month hit record highs in the previous session after a three-year pact between Saudi Arabia and Russia and other major oil producers to limit supply fell apart on March 6, 2020.

At the end of 2018, OPEC and a number of non-affiliated countries (Kazakhstan being one of them) decided to extend the agreement on reducing oil production, which has been in force since the beginning of 2017. The countries agreed to reduce their production by a total of 1.2 million barrels per day from the level of October 2018.

A decision was passed in Vienna on July 2, 2019, regarding the extension of the agreement on the reduction of oil production by the countries of OPEC and non-members of the cartel until the end of the first quarter of 2020.

Kazakhstan has supported the decision to reduce oil extraction by additional 500,000 barrels a day within the framework of OPEC+ agreement under the decision made during the 7th OPEC and non-OPEC Ministerial Meeting held in Vienna, Austria, on Dec. 6, 2019.

Thus, latest liabilities of Kazakhstan within the agreement were 1.843 million barrels a day compared to 1.86 million barrels a day previously.