OPEC-Non-OPEC Complied With Oil Output Cut Deal By 80% In February - IEA

OPEC-Non-OPEC Complied With Oil Output Cut Deal by 80% in February - IEA

Members of the Organization of the Petroleum Exporting Countries (OPEC) and non-cartel producers in February complied with the deal on oil output reduction by 80 percent, mainly due to "outperformance" of Saudi Arabia and other Gulf countries, the International Energy Agency (IEA) said Friday in its monthly report

MOSCOW (UrduPoint News / Sputnik - 15th March, 2019) Members of the Organization of the Petroleum Exporting Countries (OPEC) and non-cartel producers in February complied with the deal on oil output reduction by 80 percent, mainly due to "outperformance" of Saudi Arabia and other Gulf countries, the International Energy Agency (IEA) said Friday in its monthly report.

"Thanks to outperformance by Saudi Arabia and its Gulf allies, those cuts are starting to work. In February, OPEC+ production was 240 kb/d [thousand of barrels per day] above the target of 44.3 mb/d [millions of barrels per day], which delivered a compliance rate of 80%," the report read.

In December, participants of the OPEC-non-OPEC oil output cut deal, which has been in force since early 2017, agreed to reduce overall production by 1.2 million barrels per day starting from 2019.

At the same time, officials from the Russian Energy Ministry and OPEC have noted that compliance calculations made by OPEC-non-OPEC countries themselves differed from IEA's. The difference is partly due to the fact that, when making calculations for some non-OPEC countries participating in the deal, the IEA, in addition to crude oil output, takes into account the production of natural gas liquids.

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