Two anonymous OPEC sources say that eleven of the non-OPEC nations that are part of the oil output reduction deal struck at the end of November have only made 40 percent of promised cuts, according to Reuters.
The report said the sources cited numbers found in data published by the International Energy Agency.
The IEA’s numbers Friday morning showed that OPEC’s supply-cut deal achieved a greater level of success—a record internal initial compliance rate of 90 percent. The Organization of Petroleum Exporting Countries (OPEC) said its members had made 92 percent of expected cuts, data released the same day showed.
OPEC, Russia and other oil producers aimed to curb output by 1.8 million barrels per day during the first six months of the new year in an effort to rid global markets of a price-crashing supply glut.
Part of the issue with the low compliance from outside of OPEC stems from Russia’s phased implementation of the reduction agreement, according to a note by Reuters.
January saw Moscow’s supplies down by 117,000 bpd—or about one-third of total planned production cuts.
A technical committee made up of representatives from OPEC and non-OPEC countries will meet in Vienna on February 22 to discuss the next steps in making the stated goals of the deal a reality.
When OPEC decided last November to coordinate an output cut to 32.5 million bpd between January and June, the majority of analysts and experts were skeptical about the cartel achieving a high compliance rate, given OPEC’s average historical compliance rate at around 60 percent. But the latest estimates suggest that this time around, OPEC may have delivered on its promise, at least for January, while non-OPEC signatories to the deal have a ways to go to bring themselves into compliance.
By Zainab Calcuttawala for Oilprice.com