OPEC achieves 91% compliance in February – IEA
Baku, Azerbaijan, March 15
By Leman Zeynalova – Trend:
The compliance level of OPEC with the oil output cut deal reached in Vienna, stood at 91 percent for February, the International Energy Agency (IEA) said in its Oil Market Report.
In general, OPEC production agreement appears in February to have maintained the solid start seen in January, according to the IEA.
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.
“OPEC crude output rose by 17,000 barrels per day (b/d) in February to 32 million b/d, putting compliance with the group's supply cut at 91 percent for the month,” said the report.
In particular, Saudi Arabia raised output by 180,000 b/d month-on-month, but flows remained below its agreed target.
IEA estimates that global oil supplies rose 260,000 b/d in February as OPEC and non-OPEC producers pumped more.
“At 96.52 million b/d, world oil production stood 170,000 b/d below a year ago. OPEC posted a year-on-year decline for the second month running,” said the report.
In 2017, non-OPEC output is set to rise 0.4 million b/d to 58.1 million b/d, according to the IEA forecasts.
As for the global demand, IEA experts believe that having expanded by 1.6 mb/d in 2016, global oil product demand growth is expected to ease back to 1.4 million b/d in 2017.
Early indicators of 1Q17 demand support this, with slowdowns seen in January in Japan, Germany, Korea and India, according to the report.
Follow the author on Twitter: @Lyaman_Zeyn