IEA says OPEC Compliance With Oil Cuts at it’s Lowest in June
OPEC’s compliance with production cuts fell in June to its lowest levels in six months as a few members drew substantially more oil than permitted by their supply agreement, hence delaying market re-balancing, the International Energy Agency said on Thursday.
Compliance tumbled to 78 percent from 95 percent the earlier month in June, the Paris-based office said on Thursday.
However, it was suggested that compliance ought to be judged over the entire time of the production cut to March 2018, instead of only one month.
One positive outlook for oil costs could be a bounce back in worldwide demand growth, which the IEA assessed at 1.5 million barrels for every day in the second quarter of 2017 from 1 million in the first.
The cuts in Brent were rough. The global standard, has settled oil at around at $48.38 US a barrel exchanging, up 64 cents.