Compliance by OPEC members to an oil-supply deal rose in December due to an extended decline in output from Venezuela and further cuts by Gulf producers, according to a Reuters’ survey.
Compliance by OPEC members to an oil-supply deal rose in December due to an extended decline in output from Venezuela and further cuts by Gulf producers, according to a Reuters’ survey.
The Organization of the Petroleum Exporting Countries is reducing output by about 1.2 million barrels per day (bpd) as part of a deal with Russia and other non-OPEC producers. The pact will run until the end of 2018.
Adherence to the curbs rose to 128 percent from 125 percent in November, Reuters reported citing survey findings. The United Arab Emirates for the first time since the deal took effect in January 2017 produced below its OPEC target, joining Saudi Arabia and Kuwait.
Oil hit its highest since May 2015 last week, supported by falling inventories, strong demand and high OPEC compliance.
The survey shows no sign of producers boosting output to cash in on higher prices or to replace the decline in Venezuela, where output is dropping amid an economic crisis, Reuters said.
Top exporter Saudi Arabia trimmed output by 60,000 bpd, according to sources in the survey who cited stable to lower exports and lower refinery processing, putting supply further below the kingdom’s OPEC target.
Production in Venezuela, where the oil industry is starved of funds due to a cash crunch, has fallen further below its OPEC target, the survey found. Both exports and refinery operations were lower in December.
The UAE, the incoming OPEC president, has cut production further and delivered its highest adherence yet, according to the Reuters’ surveys. The UAE was a laggard on compliance for most of 2017, compared to peers like Saudi Arabia.
Libyan output slipped by 30,000 bpd, hindered by damage to a pipeline in a suspected attack and other outages.
Source: Pipeline ME
