OPEC Meets 82% Compliance with Freeze Deal

OPEC Meets 82% Compliance with Freeze Deal

The Organization of the Petroleum Exporting Countries’ (OPEC) oil output was set to fall by more than 1mb/d in January to prop up oil prices and reduce a supply glut. Supply from 11 OPEC members with production targets under the deal has averaged 30.01mb/d in January, compared to 31.17mb/d in December, Reuters reported.

Compared with the levels that the countries agreed to make the reductions from, in most cases resembling their output in October 2016, OPEC members have cut output by 958,000b/d of the pledged 1.164mb/d, equating to 82 % compliance, Business Times informed.

Saudi Arabia has reduced output to less than 10mb/d in January. The drop in OPEC output has been offset slightly by higher supply from Libya and Nigeria, which are both exempted from the OPEC agreement, because of output losses caused by internal militant conflicts in the two countries.

In addition, Iran, which was allowed to raise output under the OPEC deal, because sanctions had crimped its past revenues, has pumped an additional 20,000 b/d.

Dr. Mahinaz El-Baz 318 Posts

Mahinaz El Baz received her PhD degree in International Economics from Helwan University in 2022. She has +10 years of experience in journalism and economic analysis. She received the "Best Economic Article Award" in 2016 from CFA Society Egypt.

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