OPEC+ Compliance With Oil Output Cuts Jumps to 103%
EghtesadOnline: The OPEC+ group of producers’ compliance with the oil output cuts in January hit 103%, higher than the estimated compliance in December.
In December 2020, the OPEC+ coalition saw its overall compliance with the original production adjustments at 101%, OPEC said at the end of the February monthly meeting of the OPEC+ panels. This compliance level is “reinforcing the trend of high compliance by participating countries”, OPEC said.
In January 2021, the 10 OPEC members bound by the pact achieved 108% compliance, while the non-OPEC group of producers, led by Russia, complied with the cuts at 95%, up from 93% in December, Bloomberg reported.
“The biggest producer in the non-OPEC group, Russia, is aiming for 100% compliance,” Deputy Prime Minister Alexander Novak said at the beginning of February.
Russia was just one of two members of the OPEC+ group, alongside Kazakhstan, which was allowed to raise its oil production by 65,000 barrels per day each in February and March, while all the others are set to keep output flat and Saudi Arabia is cutting 1 million bpd beyond its quota this month and next.
The compliance figures will be reviewed by the OPEC+ panels next week, before the monthly meeting of the group’s ministers, expected to decide how the group will proceed with the supply management from April onwards.
The leaders of the OPEC+ alliance, namely Saudi Arabia and Russia, are reportedly once again at odds over oil production policies, especially in light of the oil price rally so far this year.