OPEC has fulfilled 90 percent of the oil production cut target in January.
In January, OPEC production decreased by 890,000 barrels per day, according to secondary sources, to average 32.139 million barrels per day, the cartel said in its February Oil Market Report.
“Preliminary data indicates that world oil supply in January 2017 fell by 1.29 million barrels per day month-over-month to average 95.82 million barrels per day,” said the report. “The decline was due to lower OPEC and non-OPEC oil production.”
Crude oil output decreased the most in Saudi Arabia (down by 496,200 barrels per day), Iraq (down by 165,700 barrels per day) and the UAE (down by 159,300 barrels per day), while production in Nigeria (up by 101,800 barrels per day), Libya (up by 64,700 barrels per day) and Iran (up by 50,200 barrels per day) increased, said the OPEC report based on secondary sources.
Year-on-year, world oil supply declined by 0.46 million barrels per day, according to the report.
During a meeting in Vienna, Austria, on Nov. 30, 2016, OPEC members decided to implement a new production target of 32.5 million barrels per day. Later, non-OPEC countries agreed to cut the output by 558,000 barrels per day during the meeting held Dec. 10, 2016.
Eleven non-OPEC countries – Azerbaijan, Bahrain, Brunei, Equatorial Guinea, Kazakhstan, Malaysia, Mexico, Oman, Russia, Sudan, and South Sudan – agreed to reduce the oil output.
OPEC and non-OPEC countries pledged to start implementing the deal from Jan. 1, 2017 for six months, extendable for another six months.
It was also decided to establish a High-level Monitoring Committee, consisting of oil ministers, and assisted by the OPEC Secretariat, to monitor the implementation of the agreement.
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