Official figures forecasting a heavy fall in Norwegian oil production during 2016, result in an oil price rise, despite a February’s glut increase.
The Norwegian Petroleum Directorate (NPD) published figures that show the nation’s production of hydrocarbons for February 2016 rose by approximately 0.5% compared to January 2016- which itself saw an increase over December.
Norwegian Oil And Gas Production
The production increase amounts to 12,000 barrels of oil, putting the nation’s total production at around 2,050,000 barrels of oil equivalent per day.
Adding further pressure to global markets, the NPD also confirmed that Norway’s gas sales fell compared to January, by 0.5 billion cubic metres.
2016 Production Forecast
However looking ahead NPD’s official 2016 forecast for Norwegian production showed, a shortening of the gap in March and a steep reduction over the summer months, with natural gas output being reduced by around one third during september.
Even with an increase heading into the European winter months, the nation’s production looks to remain comfortably below that of 2015.
Global markets welcomed the forecast reduction, resulting in rise in the price of Brent Crude by 2.4%, almost $1, to $41.65 in early trading, whilst Natural Gas rose around 1% to $19.
Norway’s Production Breakdown
February’s figures for liquid production show 1,619,000 barrels of oil, 395,000 barrels of Natural Gas Liquids (NGL), and 37,000 barrels of condensate. In total the liquid output for February was 9% higher than the same period in 2015.