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Published: Mon, May 01, 2017
Economy | By Melissa Porter

Oil cut deal now at 98% compliance level, says OPEC

Oil cut deal now at 98% compliance level, says OPEC

Russian Federation says it has cut its production of crude oil by around 300,000 barrels per day (bpd) as part of an agreement with world's oil producers to shore up global prices.

"Now we're going on the 25th of May to OPEC and we're definitely going to be in line with OPEC's final decision and collective decisions", Jabar al-Luaibi told a conference in Paris.

He added that Tehran was seeing "positive signals" for an extension of the accord on oil production cuts.

"We need to see the global stock overhang move closer to its five-year average".

The Organization of the Petroleum Exporting Countries, along with Russian Federation and other non-OPEC producers, pledged to cut output by 1.8 million barrels per day (bpd) in the first half of 2017.

JMMC said based on the report of the Joint OPEC-Non-OPEC Technical Committee (JTC) for the month of March, OPEC and Non-OPEC countries have continued their high level of conformity with their voluntary adjustments in production.

Based on a plan proposed by Saudi Arabia previous year, OPEC producers in a meeting in Vienna in December 2016 agreed to cut production by 1.2 million barrels per day (mb/d) for six months beginning from January 2017 in a bid to shore up prices.

The WB is overall optimistic for oil, expecting supply to tighten in the current quarter as OPEC and non-OPEC production cuts start to affect global supply. But Luaibi said on Thursday Baghdad would go with the consensus reached by OPEC.

In late November, OPEC member states signed an agreement to decrease oil production by 1.2 million barrels per day to 32.5 million barrels per day for the whole cartel.

Angola's oil minister, José Maria Botelho de Vasconcelos, said he believed the deal would be extended beyond June.

Barkindo said consensus on a decision during OPEC's next meeting was "gradually building up".

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