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23/06/2017 - 07:00hs
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Oil agreement sees highest compliance level

The goal of slashing global output by 1.8 million barrels per day was exceeded in May. Opec members and non-members agreed to reduce supply in order to drive prices up.



Vienna – Members of the Organization of Petroleum Exporting Countries (Opec) and other oil-producing nations registered the highest level of compliance with an agreement to cut global production, Kuwait News Agency (KUNA) reported this Thursday (22).

At the end of last year, the 13 Opec countries and 11 non-members decided to slash daily output by 1.8 barrels in a bid to push prices up.

Kuna said compliance reached 106%, i.e. more than the expected level. The information was made public by a ministerial committee established to keep track of the pact; it is based on a report concerning the month of May.

The committee hailed the fact that compliance with the deal has increased steadily since it went into effect, on January 1st, surpassing 100% in April and May.

The original deal provided for a six-month production cut, but the parties involved decided to extend it for another nine months.

Although oil prices did go up early on in the year, they slid to a ten-month low last Wednesday (21). Thursday, however, saw the barrel price climb 0.59%, to USD 42.78 in the United States, and 0.96% to USD 45.25 in London.

*Translated by Gabriel Pomerancblum

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