Level of OPEC+ deal fulfillment is 109pct

28 August 2018 18:17 (UTC+04:00)

By Sara Israfilbayova

Participants of the OPEC+ agreement fulfilled their obligations by the end of July by 109 percent.

This indicator was voiced at a meeting of the ministerial monitoring committee at OPEC+ held on August 27, which was held in the teleconference mode, Reuters reported.

In June, the implementation rate of the agreement was 121 percent.

Earlier in June, OPEC+ countries approved the recovery of production by 1 million barrels per day, which should lead them to 100 percent compliance with the terms of the agreement. Prior to this agreement on limiting production was overfulfilled, the level of reduction reached 150 percent of the plan.

World crude prices are affected by different factors. The International Energy Agency (IEA) on August 27 warned of further supply disruptions, especially from Venezuela, where an economic crisis has cut deep into the OPEC-member’s oil output.

Venezuelan crude oil exports had halved in the previous two years to just 1 million bpd by mid-2018, according to trade flow data.

West Texas Intermediate (WTI) crude for October delivery on the New York Mercantile Exchange added 0.2 percent, to settle at $68.87 a barrel, the highest finish for a front-month contract since August 7, Brent crude the global benchmark, added 0.5 percent, to $76.21 a barrel, which is the highest for front-month contract since July 10, MarketWatch reported.

OPEC and non-OPEC producers reached an agreement in December 2016 to curtail oil output jointly and ease a global glut after more than two years of low prices. OPEC agreed to slash the output by 1.2 million barrels per day from January 1.

Non-OPEC oil producers such as Azerbaijan, Bahrain, Brunei, Equatorial Guinea, Kazakhstan, Malaysia, Mexico, Oman, Russia, Sudan, and South Sudan agreed to reduce output by 558,000 barrels per day starting from January 1, 2017.

OPEC and its partners decided to extend its production cuts till the end of 2018 in Vienna on November 30, as the oil cartel and its allies step up their attempt to end a three-year supply glut that has savaged crude prices and the global energy industry.

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Sara Israfilbayova is AzerNews’ staff journalist, follow her on Twitter: @Sara_999Is

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