Dubai: Compliance with a global supply cut deal by Opec and non-Opec oil producers has been high in January and that level of commitment is expected to improve over the next months, the United Arab Emirates Energy Minister said yesterday.
”The first month I see the commitment around Opec has been there from the various independent sources. The level of commitment is high and we are expecting to see more commitments in the months to come,” Suhail bin Mohammed Al Mazroui told reporters.
Opec has delivered more than 90 percent of pledged oil output curbs in January, according to figures the exporter group uses to monitor its supply seen by Reuters, making a strong start to implementation of its first production cut in eight years.
On December 11, eleven non- Opec oil-producing countries including Russia agreed to cut their output by 558,000 barrels per day in a joint bid to boost a saturated global market.
The decision, taken at a meeting at Opec headquarters in Vienna, follows the group’s announcement on November 30 it would reduce its output by 1.2 million barrels per day from January, to 32.5 million bpd. It was the group’s first cut in eight years. Under that deal, Opec sought for oil-producing nations which are not members to lower their output by 600,000 barrels a day. Russia had already signalled it would provide half of that production cut in the first half of 2017.
