Mubasher: Oil production is expected to be within the range of 32.5 to 33 million barrels per day, decreasing by nearly 3% or 500,000 to 1 million barrel per day from current levels, according to NBK.
This comes after the recent agreement of the Organization of the Petroleum Exporting Countries (OPEC) in Algeria, which would be sufficient to eliminate the global supply overhang, according to a recent report by National Bank of Kuwait (NBK).
The new OPEC deal potentially signifies a reversal of the two-year long policy of holding off on supply intervention and allowing the markets to establish an equilibrium price by themselves, and it has increased oil prices and global oil and commodity stocks up to 6%, the report explained.
The rise in crude and petroleum product stocks, though slowing, continues to put a lid on oil price rises, the report indicated.
OPEC output continued to surge in August, reaching 33.47 million barrels per day, according to the International Energy Agency (IEA).
Notable gains were recorded in Kuwait and the UAE, which both pumped at a historic high of 2.91 million barrels per day and 3.07 million barrels per day, respectively, stated the report.
Saudi Arabia, on the other hand, saw a slight dip in production, of 50,000 barrels per day, from July's record of 10.65 million barrels per day, it added.
