Compliance with a global supply cut deal by OPEC and non-OPEC oil producers is expected to improve over the next months, the UAE Energy Minister said on Sunday.
OPEC has delivered more than 90 percent of pledged oil output curbs in January, according to figures the exporter group uses to monitor its supply seen by Reuters, making a strong start to implementation of its first production cut in eight years.
Suhail bin Mohammed al-Mazroui said the level of commitment the deal is expected to grow in the coming months.
“The first month I see the commitment around OPEC has been there from the various independent sources. The level of commitment is high and we are expecting to see more commitments in the months to come,” told reporters.
The Organization of the Petroleum Exporting Countries is cutting its crude output by about 1.2 million barrels per day (bpd) from Jan. 1 to prop up oil prices and reduce a supply glut. Russia and 10 other non-OPEC countries agreed to cut half as much.