OPEC 86% Compliant with Production-Cut Obligations

OPEC 86% Compliant with Production-Cut Obligations

OPEC compliance with the oil-production agreement implemented in January between OPEC and major, non-OPEC oil producers is at 86%, according to the Executive Director of the International Energy Agency (IEA), Fatih Birol, according to Reuters.

An extension of the agreement, Birol notes, could cause, “sometime next year, a rebalancing of the markets, as we still see a significant amount of stock in markets which is higher than historical averages,” Reuters reports.

OPEC and other major oil producers, such as Russia, have agreed to cut oil production by 1.8 million barrels a day (b/d) until March 2018 in an attempt to draw down global oil stocks and raise prices.

Some signatories of the agreement have floated the possibilities of extending the agreement or of broadening it to additional oil producers.


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