Here’s a look at top OPEC announcements this year

The year 2017 was an important one for the Organization of the Petroleum Exporting Countries (OPEC), primarily due to the group’s collaboration with non-member countries to cut oil production in order to rebalance the market and boost crude prices.

The deal so far has seen top OPEC members like Saudi Arabia cut production and exports in order to tackle the global supply glut.

Argaam has compiled the major announcements made by OPEC members and allies during the course of the year.

January

The deal between OPEC and other exporters, including Russia, to cut output by 1.8 million bpd came into force from Jan. 1.

February

Saudi Arabia, the world’s largest crude shipper, reduced exports to a 21-month low. Oil exports declined to 6.95 million barrels a day, the lowest since May 2015, from 7.7 million a day in January. The Kingdom, however, boosted production to 10 million barrels a day from 9.7 million a day.

March

A joint committee of ministers from OPEC and non-OPEC oil producers agreed to review whether a global pact to limit supplies should be extended by six months, as the committee reported “a high level of conformity and recommends six-month extension.” 

April

A technical committee of OPEC and non-OPEC members recommended extending the global deal to cut output for another six months in the second half of this year.

May

OPEC announced it would extend cuts in oil output by nine months to March 2018, rolling over the 1.8 million bpd supply cut until the first-quarter.

June

Saudi Arabia and Russia announced a $1 billion fund to invest in energy projects, strengthening their cooperation in oil, gas, electricity and renewable energy.

July

Saudi energy minister Khalid Al-Falih said the Kingdom would limit its crude exports to 6.6 million bpd in August, almost 1 million bpd below levels of a year ago.

Separately, OPEC and non-OPEC producers discussed extending their deal to cut output beyond March 2018 if necessary.

October

OPEC said its production-cut deal with non-OPEC producers was getting rid of a glut. It predicted higher demand for its oil in 2018, stating there was need of 33.06 million bpd of its crude next year, up 230,000 bpd from its previous forecast. 

Separately, Saudi Arabia moved into harnessing the power of renewables as Abu Dhabi’s Masdar and Electricite de France SA submitted a bid to supply power from a 300-megawatt photovoltaic plant for as low as 1.79 cents a kilowatt hour.

November

OPEC announced the extension of oil output cuts until the end of 2018 since the current deal, under which they are cutting supply by about 1.8 million bpd, will expire in March 2018.

December

Al-Falih said oil producers were likely to start discussing in June 2018 when to raise output once the market outlook was clearer. He, however, added the expectation was that “we will not alter our course in the second half of the year,” adding that this assumed there were no unexpected developments.

Meanwhile, UAE Energy Minister Suhail Al Mazroui said that production cut agreement between OPEC and non-OPEC members was working perfectly and any talk about exiting from the deal would be a mere speculation.