/By Arabian Post Staff/ The 10 Organization of the Petroleum Exporting Countries (OPEC) members moved closer to full compliance with the landmark production cut agreement signed late last year, as output in the month fell from January levels to average 32.03 million barrels per day, according to an S&P Global Platts survey released today.
In all, taking an average of January and February production, the 10 members obligated to reduce output under the deal have achieved 98.5% of their total combined cuts, according to the survey, up from 91% in January.
“A Saudi-led OPEC is showing the market it is serious in making the agreement stick. While it remains an open question whether OPEC will achieve its goal of drawing down stocks sufficiently to rebalance the market, OPEC is fulfilling its commitment, certainly in contrast to non-OPEC partners who are some ways from cutting down to their agreed levels,” said Herman Wang, OPEC Specialist, S&P Global Platts.
Saudi Arabia continued to show the strongest output discipline, with its February production averaging 9.85 million b/d, the survey found, below its allocation under the deal of 10.06 million b/d and its lowest output since February 2015, according to the survey archives. Its January and February combined average output of 9.92 million b/d was 140,000 b/d below its deal.
The kingdom’s overcompliance, along with Angola’s, is helping compensate for the overproduction others within OPEC, notably Iraq, Venezuela, and the UAE, which have not cut down to their allocations under the deal. Iraq remains 91,000 b/d above its quota despite lowering its February output, Venezuela is 43,000 b/d above, and the UAE is 42,000 b/d above. Saudi Arabia and Angola’s output reductions also have mostly offset for increases by exempt Libya and Nigeria since the deal began on January 1.
