OPEC+ Compliance With Oil Cuts Agreement In December Stood At 100% - IEA

OPEC+ Compliance With Oil Cuts Agreement in December Stood at 100% - IEA

The compliance of the OPEC+ countries with the oil cuts agreement last month stood at 100 percent versus 101 percent level of conformity in November, the International Energy Agency (IEA) said on Tuesday

MOSCOW (Pakistan Point News / Sputnik - 19th January, 2021) The compliance of the OPEC+ countries with the oil cuts agreement last month stood at 100 percent versus 101 percent level of conformity in November, the International Energy Agency (IEA) said on Tuesday.

The members of OPEC achieved the compliance of 105 percent in December, while the conformity of the non-OPEC parties to the oil cuts agreement stood at 93 percent.

In particular, Saudi Arabia, the leader of OPEC, showed the compliance of 100 percent last month, while the compliance of Russia, the leader of non-OPEC, is estimated at 93 percent, according to the IEA report.

In December, the oil production by OPEC members increased by 150,000 barrels a day month-on-month, to 25.2 mbd mainly due to further recovery of the production in Libya, which is exempt from the oil cuts agreement.

At the same time, the agency expects the OPEC+ members to cut their oil production by 5.8 mbd in the second half of this year.

"Our balances assume that during 2H21, OPEC+ will still withhold 5.8 mb/d of oil from the market as per the group's April 2020 agreement. However, OPEC+ has taken a more flexible approach to market management and will meet monthly to decide on output levels," the IEA noted.

The OPEC+ oil output is set to rise by 670,000 barrels a day this year, while the production outside the alliance is set to increase by 560,000 barrels a day.