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OPEC compliance slumps to 78%, lowest rate in 2017

Oil&Gas Materials 13 July 2017 12:14
OPEC compliance slumped to 78 percent, the lowest rate this year, and was overtaken by the non-OPEC group whose rate improved to 82 percent.
OPEC compliance slumps to 78%, lowest rate in 2017

Baku, Azerbaijan, July 13

By Leman Zeynalova – Trend:

OPEC compliance slumped to 78 percent, the lowest rate this year, and was overtaken by the non-OPEC group whose rate improved to 82 percent, the International Energy Agency (IEA) said in its Oil Market Report.

OPEC crude output rose by 340,000 barrels per day in June to 32.6 million barrels per day after Saudi flows increased and Libya and Nigeria, spared from cuts, pumped at stronger rates, according to the report.

“In the past few months, Libya and Nigeria have seen their combined output increase by more than 700,000 barrels per day. For fellow OPEC members, who agreed to reduce production by 1.2 million barrels per day, to see their cut effectively diluted by nearly two-thirds must be very frustrating, especially as their pact has, hitherto, been well observed by historical standards,” said the IEA analysts.

At the same time, global oil supply rose by 720,000 barrels per day in June to 97.46 million barrels per day as producers opened the taps, according to the report.

On May 25, OPEC member countries and non-OPEC parties, Azerbaijan, Kingdom of Bahrain, Brunei Darussalam, Kazakhstan, Malaysia, Mexico, Sultanate of Oman, the Russian Federation, Republic of Sudan, and the Republic of South Sudan agreed to extend the production adjustments for a further period of nine months, with effect from July 1, 2017.

The reductions will be on the same terms as those agreed in November.

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