Organisation of the Petroleum Exporting Countries’ (OPEC) oil production declined last month, reaching a ten month low according to a Reuters survey. The figures indicate that compliance with the present OPEC and non-OPEC output cuts, being implemented by a cartel of 24 countries, is at the highest rate yet recorded.
OPEC generated 32.3mn barrels per day (bpd) in February, down around 70,000 bpd from January. This is the lowest total since April 2017, according to the Reuters study.
Compliance with the production cuts hit 149%, up from 144% in January, suggesting commitment to the scale back is hardening over time.
Oil prices pushed through $70 a barrel in early January, touching three year highs. The price of Brent crude is still trading in a band around $65 a barrel.
OPEC believes the cuts should continue until the end of 2018, at least, in a bid to reduce healthy inventories and consequently support the oil price.
