Low prices take toll on non-Opec oil production

Production falls: Pump jacks seen at the Lukoil-owned Imilorskoye oil field outside the west Siberian city of Kogalym, Russia. The world surplus will diminish to 200,000 barrels a day in the last six months of the year from 1.5 million in the first half, according to IEA. – Reuters

LONDON: Global oil markets will “move close to balance” in the second half of the year as lower prices take their toll on production outside Organisation of Petroleum Exporting Countries (Opec), the International Energy Agency (IEA) said.

The world surplus will diminish to 200,000 barrels a day in the last six months of the year from 1.5 million in the first half, the agency said in a report yesterday. Production outside Opec will decline by the most since 1992 as the US shale oil boom falters.