The US Energy Information Administration estimated that OPEC’s spare crude oil production capacity fell by 170,000 bpd (barrels per day) to 2.01 MMbpd (million barrels per day) in June 2017 compared to May 2017, the lowest level since January 2017.
OPEC agreed to reduce crude oil production by 1.2 MMbpd (million barrels per day) . OPEC’s crude oil production fell by 690,000 bpd (barrels per day). OPEC production could fall in 2017 due to the production cut deal. An expected fall in OPEC’s crude oil production in 2017 could support crude oil prices. Higher crude oil prices have a positive impact on the major oil producers like Saudi Aramco, ConocoPhillips (COP), Stone Energy (SGY), and Denbury Resources (DNR).