Release date: 2017/7/13
The International Energy Agency said on Thursday that OPEC's commitment to production cuts fell in June to a six-month low as many members pump more crude above the allowable production agreement, delaying the market's recovery.
OPEC's commitment to cuts fell to 78 percent last month from 95 percent in May, with output beyond Algeria, Ecuador, Gabon, Iraq, the United Arab Emirates and Venezuela eroding the strong commitment of Saudi Arabia, Kuwait, Qatar and Angola.
"Every month there seems to be something to raise doubts about the pace of restoring the balance," the Paris-based agency said. "This month there are two bottlenecks: the massive recovery in oil production from Libya and Nigeria and the low commitment of OPEC to its production agreement."
The Organization of the Petroleum Exporting Countries (OPEC) and a number of non-Opec producers, including Russia, have agreed to cut production by about 1.8 million barrels a day until March 2018 to reduce the global supply gap fueled by US production boom.
Libya and Nigeria were exempt from cuts due to years of instability that had damaged their production. The International Energy Agency said the two countries have been able to increase their production of more than 700 thousand barrels per day in recent months.