17 September 2017, Sweetcrude, Lagos — The Organisation of the Petroleum Exporting Countries, OPEC’s quota of world’s crude oil market supplies has dropped to around 40 percent.
According to OPEC’s Secretary General, Mohammed Barkindo in a speech given in Oxford weekend, although the group has not lost its control of the market yet, its share has dropped.
OPEC once supplied the highest quota, 60 percent of crude oil consumed in the world to the market.
However, Barkindo said with the influx of shale oil, U.S’ share of marginal growth in that consumption has surged, although the country supplies 14 percent of world’s consumption.
Barkindo said as more dollars target “short-cycle” resources (shale), longer-cycle, conventional oil projects are being shelved.
Aside from shale oil disrupting OPEC’s market share, to boost oil prices, implementation of the Algiers Accord, 171st Ministerial conference held last year, decided to reduce production of its members by 1.2 million barrels to bring its ceiling to 32.5m b/d, effective from January 1st this year.
The duration of this agreement was for six months after which it was extended by another 8 months into March 2018.
With Nigeria and Libya exempted from the cut deal, Algeria that had 1, 089 million barrels per day quota, got its supplies slashed by 50, 000 thousand b/d.
Angola once had 1, 751m b/d, slashed down by 78, 000 b/d.
Ecuador with production quota of 548, 000 b/d, was dropped by 26, 000b/d.
Gabon with 202, 000 b/d, got its supplies cut by 9,000b/d.
Iran used to supply 3, 975mb/d, now got a raise of 90, 000 b/d.
Iraq used to supply 4, 561m b/d, now supplies less 210, 000 b/d, reducing its supplies to 4,351m b/d.
Kuwait had 2,838mb/d, cut by 131, 000 b/d to 2,707m b/d.
Qatar with 648, 000b/d, got a slash of 30, 000b/d, making its supplies 618, 000 b/d.
Saudi Arabia’s 10, 544m b/d, got a cut of 486, 000 b/d to 10, 058 b/d.
UAE with 3,013mb/d, got a slash of 139, 000b/d to 2,874 b/d.
While Venezuela with 2, 067mb/d got a slash of 95, 000b/d, dropping to 1, 972m b/d.