By Kamila Aliyeva
An increase was recorded in compliance levels with the November oil output cut deal among non-cartel members.
Ten non-OPEC countries have achieved more than 100 percent compliance for the first time, according to September Oil Market Report of the International Energy Agency (IEA).
The non-OPEC countries fulfilled the plan to reduce production in August by 118 percent at the expense of Kazakhstan and Azerbaijan.
Kazakhstan exceeded its plan by almost three times, cutting production by 54,000 barrels per day in August with a quota of 20,000. Azerbaijan reduced production in August by 78,000 with a quota of 35,000 barrels per day. Oil production also significantly fell in Mexico - by 170,000 instead of 100,000 under the agreement.
Global oil supply fell by 720,000 barrels per day (b/d) in August due to unplanned outages and scheduled maintenance, mainly in non-OPEC countries, according to the report.
“The first decline in four months cut supply to 97.7 million b/d. Compared to a year ago, output was up 1.2 million b/d as non-OPEC continued to show substantial growth,” the IEA said.
IEA analysts noted that OPEC crude output fell in August for the first time in five months, after renewed turmoil in Libya disrupted flows and others pumped less.
“Output decreased by 210,000 b/d from a 2017 high to 32.67 million b/d. The 12 members bound by OPEC's supply pact raised their compliance rate to 82 percent from 75 percent during July. For the year as whole their compliance rate is 86 percent,” said the report.
Meanwhile, Kuwait's oil minister Essam al-Marzouk said that OPEC + may hold an extraordinary meeting in March to consider extending the oil production cut deal. He also noted that the alliance is considering all measures, including new cuts.
The Kuwaiti oil minister also added that Nigeria will join the OPEC+ deal once its daily crude production reaches 1.8 mln barrels.
"In St. Petersburg we agreed that once Nigeria reaches the 1.8 mln barrel daily oil production level and is able to maintain it for two months or more it will join other OPEC nations," he said.
Speaking about Libya's participation in the agreement the minister noted that the situation is the same as with Nigeria.
OPEC and other major oil producers such as Russia, Azerbaijan, Bahrain, Brunei, Equatorial Guinea, Kazakhstan, Malaysia, Mexico, Oman, Sudan, and South Sudan reached an agreement in December 2016 to remove 1.8 million barrels a day from the market.
The deal to curb output brought crude prices above $58 a barrel in January but they have since slipped back as the effort to drain global inventories and stabilize the oil market has taken longer than expected.
OPEC and its partners decided to extend its production cuts till March 2018 in Vienna on May 25, 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.
Kamila Aliyeva is AzerNews’ staff journalist, follow her on Twitter: @Kami_Aliyeva
Follow us on Twitter @AzerNewsAz