OPEC data show more than 90 pc compliance with supply cut

OPEC has delivered more than 90 per cent of pledged oil output curbs in January, according to figures the exporter group uses to monitor its supply, making a strong start to implementation of its first production cut in eight years.

The Organization of Petroleum Exporting Countries is cutting its crude output by about 1.2 million barrels per day (bpd) from January 1 to prop up oil prices and reduce a supply glut. Russia and 10 other non-OPEC countries agreed to cut half as much.

Supply from the 11 OPEC members with production targets under the deal has fallen to 29.921 million bpd, according to the average assessments of the six secondary sources OPEC uses to monitor its output and which were seen by Reuters. This amounts to 92 per cent compliance, according to an OPEC calculation -- more than many analysts expected.

“It is encouraging,” an OPEC source said of the compliance data so far.

“That’s the highest in OPEC history,” another OPEC source said.

Oil rose on Friday, trading above US$56 a barrel, supported by a report from the International Energy Agency -- one of the six secondary sources OPEC uses -- that put OPEC compliance at a record initial rate of 90 per cent.