Variable performance levels in OPEC and non-OPEC output cuts

Variable performance levels in OPEC and non-OPEC output cuts

Editorial Staff
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The latest official data show inconsistent compliance with the oil production cut levels agreed through the Vienna accord between oil producing countries. The data for July show that they stayed below 90 percent

In July 2017, for the second month running, compliance with crude output cuts agreed by OPEC and non-OPEC countries stayed below 90 percent. OPEC and IEA (International Energy Agency) data show that OPEC countries made 86 percent of pledged reductions compared to 84 percent in June. Non-OPEC compliance fell from 81 to 73 percent. On a percentage basis, the most “virtuous” non-OPEC producers in terms of compliance with the pledged cuts are Venezuela, Angola, Kuwait and Mexico, as well as smaller producers like Brunei and Equatorial Guinea. Saudi Arabia, the OPEC member that made the biggest commitment to crude output cuts, complied with its undertaking for most of the year but then dropped to 98 percent in July. Iraq, OPEC’s second largest producer, stopped at 44 percent. According to the news agency Bloomberg, OPEC has had to revise upwards its production data for June due to the action of countries like Saudi Arabia and the United Arab Emirates. According to IEA data, in recent moths, Russia, the largest non-OPEC producer, has made over 90 percent of the agreed cuts. In July, Mexico cut crude output by more than it had pledged while Kazakhstan, the third largest producer in the non-OPEC group, remains well below the agreed targets, although at the beginning of August it affirmed its commitment to the agreement.