The level of compliance with OPEC/non-OPEC deal to cut oil production stood at 96 percent in October, according to November Oil Market Report of the International Energy Agency (IEA).
“OPEC crude output fell 80,000 barrels per day in October due mainly to lower supply from Algeria, Iraq, and Nigeria. Output of 32.53 million barrels per day, the lowest since May, was down 830,000 barrels per day from the record rates seen a year ago. The compliance rate with supply cuts in October was 96 percent and for the year-to-date it was 87 percent,” said the report.
IEA said that global oil supply rose 100,000 barrels per day in October to 97.5 million barrels per day on higher flows from non-OPEC countries.
“Production was 470,000 barrels per day below a year ago, with OPEC supply sharply down from high 4Q16 levels,” said the report.
IEA analysts expect non-OPEC supply to rise by 0.7 million barrels per day in 2017 and 1.4 million barrels per day next year, led by higher US output.
On May 25, OPEC member countries and non-OPEC parties, Azerbaijan, Kingdom of Bahrain, Brunei Darussalam, Kazakhstan, Malaysia, Mexico, Sultanate of Oman, the Russian Federation, Republic of Sudan, and the Republic of South Sudan agreed to extend the production adjustments for a further period of nine months, with effect from July 1, 2017.
The reductions will be on the same terms as those agreed in November.
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