Baku, Azerbaijan, Feb.28
By Leman Zeynalova – Trend:
World oil prices are rising on Feb.28 as traders remain optimistic on producers’ fulfilling their obligation to cut the oil output under the Vienna agreement.
The price of April futures for Brent crude oil has increased by 0.11 percent to $55.99 per barrel as of 03:01 EST. The price of April futures for West Texas Intermediate (WTI) oil has grown by 0.04 percent to $54.07 per barrel.
During a meeting in Vienna, Austria, on Nov. 30, 2016, OPEC members decided to implement a new production target of 32.5 million barrels per day. Later, non-OPEC countries agreed to cut the output by 558,000 barrels per day during the meeting held Dec. 10, 2016.
Eleven non-OPEC countries – Azerbaijan, Bahrain, Brunei, Equatorial Guinea, Kazakhstan, Malaysia, Mexico, Oman, Russia, Sudan, and South Sudan – agreed to reduce the oil output.
OPEC and non-OPEC countries pledged to start implementing the deal from Jan. 1, 2017 for six months, extendable for another six months.
It was also decided to establish a High-level Monitoring Committee, consisting of oil ministers, and assisted by the OPEC Secretariat, to monitor the implementation of the agreement.
Earlier, the Joint OPEC-Non-OPEC Ministerial Monitoring Committee (JMMC) said in its January report that OPEC and non-OPEC producers have achieved a conformity level of 86 percent.
---
Follow the author on Twitter: @Lyaman_Zeyn