Exclusive: OPEC figures show over 90 pct compliance with supply cut - sources

Fri Feb 10, 2017 12:00pm EST
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By Rania El Gamal and Alex Lawler

DUBAI/LONDON (Reuters) - 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, making a strong start to implementation of its first production cut in eight years.

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 LCOc1 and reduce a supply glut. Russia and 10 other non-OPEC countries agreed to cut half as much.

Supply from the 11 OPEC members with production targets under the deal has fallen to 29.921 million bpd, according to the average assessments of the six secondary sources OPEC uses to monitor its output and which were seen by Reuters.

This amounts to 92 percent compliance, according to an OPEC calculation -- more than many analysts expected.

"It is encouraging," an OPEC source said of the compliance data so far.

"That's the highest in OPEC history," another OPEC source said.

Oil LCOc1 rose on Friday, trading above $56 a barrel, supported by a report from the International Energy Agency -- one of the six secondary sources OPEC uses -- that put OPEC compliance at a record initial rate of 90 percent. [nL5N1FV1Y2]

The OPEC figure of 92 percent comfortably exceeds the initial 60 percent achieved when OPEC's previous deal was implemented in 2009 and adds to indications that adherence has been high.   Continued...

FILE PHOTO: Oil workers weld a pipeline at PDVSA's Jose Antonio Anzoategui industrial complex in the state of Anzoategui, Venezuela, April 15, 2015. REUTERS/Carlos Garcia Rawlins/File Photo