OPEC Stresses Importance of Non-Cartel States' Part in Oil Output Cut

The contribution of major oil producers that are not members of The Organization of the Petroleum Exporting Countries (OPEC) is essential to re-balancing the market and removing 300 million barrels of excess oil inventories, the cartel said in its monthly report on Wednesday.

MOSCOW (Sputnik) —On Saturday, OPEC finished a two-day meeting with non-OPEC countries in Vienna, Austria. The non-OPEC countries decided to cut oil output by 612,000 barrels per day, with Russia cutting output by 300,000 barrels per day.

"It should be remembered that the current overhang of 300 mb, or 0.8 mb/d, will remain as additional volume in the market, as the OPEC production adjustment alone would not be enough to clear the total overhang. This clearly emphasizes the importance of non-OPEC producers’ contribution to the production adjustment in support of market rebalancing," the December report reads.

In November, OPEC agreed to cut oil production by 1.2 million barrels per day across the cartel.