Oil output from the Organization of Petroleum Exporting Countries (OPEC) is likely to fall for a third consecutive month in March as the United Arab Emirates (UAE) made progress in reducing oil supplies, The News reported.
According to The Nation, the UAE’s production cut has boosted OPEC’s compliance with its output-cutting deal to a record up to 95%, from an initial February estimate of 94%.
UAE’s Energy Minister, Suhail Al Mazrou, stated that the country will assure 100% of compliance with its OPEC commitment to reduce oil production by more than 139,000 b/d in March and April.
OPEC pledged to reduce output by about 1.2m b/d from January – the first accord on supply curbs since 2008. Non-OPEC countries pledged to cut about half as much.
The cartel wants to end a glut that is keeping oil below $52 a barrel, half the level of mid-2014. However, stocks are still high despite strong OPEC compliance, boosting expectations that the group will seek to prolong the agreement.