The International Energy Agency (IEA) pointed out that Russia's oil exports in July remained at the same level of 7.3 million barrels per day but received the largest revenue since November 2022, the agency's latest report found on Friday.

"Russian oil exports held largely steady in July at 7.3 mb/d for crude and products combined. Outbound product trade rose 200 kb/d m-o-m to 2.7 mb/d as refinery runs saw a post-maintenance surge that cut crude exports by 200 kb/d to 4.6 mb/d," the report read.

It highlighted that "Russian oil export revenues reached their highest level since November 2022 despite flat overall volumes."

The report indicated that Russia cut oil production in July by 50,000 barrels per day to 9.4 million barrels per day, which means that Moscow is complying with the announced voluntary reduction of 500,000 barrels per day.
 
"Russian crude output eased by 50 kb/d in July to 9.4 mb/d as exports declined along with higher domestic refinery runs. This means Moscow has more than fulfilled its voluntary cut of 500 kb/d," the report mentioned.

According to the report, the IEA has upgraded its forecast for the global oil demand increase by 100,000 barrels per day and expects it to be at the level of 102.2 million barrels per day in 2023.
 
"Global oil demand is set to expand by 2.2 mb/d to 102.2 mb/d in 2023, with China accounting for more than 70% of growth," it noted.

In the same context, the IEA confirmed that OPEC+ countries that have obligations under the agreement on limiting oil production decreased output by 1.14 million barrels per day in July to 35.9 million barrels per day, with the gap from the quotas being 3.67 million barrels per day.

"OPEC+ crude oil production from all 23 member countries plummeted 1.23 mb/d to 42.46 mb/d in July, the lowest level since September 2021, after Riyadh largely made good on its promise of a sharp voluntary cutback," the report read.

According to IEA data, the 19 member countries produced 35.9 million barrels per day in July. In June, their production was 37.04 million barrels, thus, over the month it decreased by 1.14 million barrels per day. The target level of production, within the quotas, is 39.57 million, therefore, the difference between the quota and real production was 3.67 million barrels per day.

The IEA report said the agency has downgraded its forecast for global oil production in 2023, expecting an increase of 1.45 million barrels per day to 101.47 million barrels per day.

"Global oil output is projected to expand by 1.5 mb/d to a record 101.5 mb/d in 2023, with the US driving non-OPEC+ gains of 1.9 mb/d. Next year, non-OPEC+ supply is also set to dominate world supply growth, up 1.3 mb/d while OPEC+ could add just 160 kb/d," it explained.

The IEA predicted that oil production in the world is expected to be 101.47 million barrels per day. A month earlier, the IEA predicted that global oil production in 2023 would grow by 1.6 million barrels per day to 101.54 million barrels per day.

Elsewhere, the IEA report concluded by highlighting that the total oil and petroleum products reserves in the Organization for Economic Co-operation and Development (OECD) countries, which include commercial and state reserves, have decreased by 14.7 million barrels in June, but are below the five-year average by 115.4 million barrels.

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