Exporting Countries (OPEC) has attained over 90 per cent compliance by its members to the cartel’s output cuts pledged in January, according to figures the exporter group uses to moni- tor its supply, making a strong start in implementing its first production cut in eight years.
OPEC is cutting its crude output by about 1.2 million barrels per day (bpd) from January 1 to prop up oil prices and reduce a supply glut.
Reuters reported that supply from the 11 OPEC members with production targets under the deal in January has fallen to 29.921 million bpd, according to the average assessments of the six secondary sources OPEC uses to monitor its output seen by Reuters.
This amounts to 92 per cent compliance, according to an OPEC calculation. Compliance of 92 per cent comfortably exceeds the initial 60 per cent achieved when OPEC’s previous deal to cut was implemented in 2009, and the OPEC figures add to indications that adherence so far has been high.
OPEC is scheduled to publish its first assessment of January production based on the secondary-source figures in its monthly oil market report on Monday.
The figures could be revised before they are published, sources said.