World News
OPEC, Non-OPEC Members Say Oil Output Cuts Are "Above Expectations"
Members and non-members of the Organization of the Petroleum Exporting Countries (OPEC) Sunday said they have already reduced oil output by 1.5 million barrels per day (bpd) as part of this year's output deal, the participating nations have said following the first meeting in Vienna of the committee intended to monitor the deal's progress.
"The deal is a success ... All the countries are sticking to the deal ... (the) results are above expectations," proclaimed Russian Energy Minister Alexander Novak.
Output could be reduced by as much as 1.7 million bpd by the end of the month, Novak added.
Last year's deal aims to reduce output by nearly 1.8 million bpd for the first half of 2017.
"The Kingdom [of Saudi Arabia] has taken the initiative and other countries took part in very significant actions," Saudi Arabia Energy Minister Khalid al-Falih told reporters after the meeting.
"Despite demand usually being lower in the first quarter in winter, the actions taken by the Kingdom and many other countries has impacted the market in a tangible way and we have seen the impact in spot prices."
He said the Kingdom is also producing just under 10 million bpd and there would be substantial cuts next month.
Russia, meanwhile, says for this month output has fallen to 11.15 million bpd following cuts of around 100,000 bpd, an amount Novak said was twice the previously planned amount.
"Everyone sees that the agreements on oil production cuts have already have a positive effect on oil markets. The market has become more stable and predictable," he said.
As to whether that positive effect would allow U.S. shale oil to boost production, Kuwait's oil minister Essam Al-Marzouq said this was not a concern.
"We are not worried that production in the U.S. is increasing as prices go up because I think this will be absorbed by an increase in demand," he said.
The output deal committee's next meeting in scheduled to take place in March.
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| Fujairah | 649.50 | 2.00 | 898.00 | 3.00 |
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| Global 4 Ports Average | 631.00 | 1.00 | 804.00 | 0.50 |
| Global Average Bunker Price | 717.50 | 0.50 | 913.50 | 1.00 |
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