OPEC Chief Sees Higher Compliance With Oil Production Cutting Deal

The Organization of the Petroleum Exporting Countries (OPEC) expects higher compliance with agreements on cutting oil production in the coming months, OPEC Secretary General Mohammed Barkindo said Tuesday.

LONDON (Sputnik) – Speaking at the International Petroleum Week conference in London, Barkindo estimated that OPEC member states are about 90-percent in compliance with the agreement, and noted the willingness of non-members to comply with the deal. He expressed confidence in a higher level of compliance in the coming months from both OPEC and non-OPEC producers.

Thirteen OPEC members agreed to slash oil output by 1.2 million barrels per day as part of the so-called Vienna Agreement reached in November, limiting production at 32.5 million barrels per day.

Eleven non-members, including Russia, agreed the following month to cut oil production by 558,000 barrels per day. Both agreements took effect on January 1, 2017.

Barkindo said a technical committee to monitor compliance with the agreement is expected to convene in Vienna on Wednesday.

Current oil prices are still far from balanced and accumulated oil reserves are still high despite the latest deal among major producers to cut output, Organization of the Petroleum Exporting Countries Secretary General said.

Speaking at the International Petroleum Week conference in London, Barkindo said the market was still far from equilibrium despite the agreement in effect since the start of the year.

Thirteen OPEC members agreed to slash oil output by 1.2 million barrels per day as part of the so-called Vienna Agreement reached in November, limiting production at 32.5 million barrels per day.

Eleven non-members, including Russia, agreed the following month to cut oil production by 558,000 barrels per day. Both agreements took effect on January 1, 2017.

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