Russia overtook Saudi Arabia last December to become the world's largest producer of crude oil, according to a monthly report by the United Oil Database (Jodi) in Monday (February 20). At that time, both countries had begun to limit production, to meet the 2017 global restrictions on the formal entry into force.
Saudi Russia last December crude oil output of 10.49 million barrels a year, compared with the previous one months down 29,000 barrels, while Saudi Arabia December daily output to 10.46 million barrels, before one months of daily production of 10.72 million barrels. It is also the first time since last March that Russian production has surpassed Saudi Arabia.
November 30 last year, the Organization of the Petroleum Exporting Countries (OPEC) formally reached a reduction agreement, then Russia and other non-OPEC oil producers also joined the production, since January 1, 2017 a total reduction of 1.8 million barrels/day, the implementation period of 6 months. According to a survey this month, OPEC's implementation rate of reducing production is as high as 90%.
Indeed, Brent's oil price has climbed about 20% since the agreement was reached last November 30. Brent crude futures rose 0.6% to $56.15 a barrel in early Tuesday (February 21), and U.S. WTI crude rose 0.3% per barrel to $54.
Jodi data also showed that the United States ranked third in the world's oil-producing countries, the country's crude oil production in 8.8 million barrels last December, lower than the November 8.9 million barrels, Iraq ranked fourth, last December, the daily output of 4.5 million barrels, China ranked fifth, last December, the daily output of 3.9 million barrels.
In addition, Saudi exports surged to more than 8 million barrels a day last November-December, before the cuts were implemented. Saudi Arabia's export volume reached 8.258 million barrels a day last November, the highest since May 2003. However, Saudi crude exports fell to 8.014 million barrels a day last December.