The Organization of Petroleum Exporting Countries (OPEC) reached record compliance levels Tuesday on production cuts. OPEC reports show that in January 90% of promised cuts, in hopes of riding a glut, delivered. A Reuters survey shows OPEC nations have cut output by 1.098 bpd, with the target at 1.164 means a 94% compliance level.
Starting in back in January, OPEC nations agreed to cut 1.2 million barrels a day and non-OPEC nations, one of the largest producers being Russia, agreed to cut about half that amount. Even the idlest nations, like Iraq and United Arab Emirates (UAE), have agreed to swiftly catch up to target levels.
At 3:37 AM GMT today, Brent crude oil added $0.17 to $56.10 a barrel and WTI crude gained 0.2% to $54.16 a barrel.
Sources tell Reuters that the world’s largest oil producer Saudi Arabia hopes to see oil rise to $60 a barrel by the end of this year. Because of this, Saudi Arabia has been cutting production more than agreed upon. In January, a Reuters survey shows Saudi Arabia cut 744,000 bpd rather than the agreed upon 486,000 bpd.
"If compliance is high by OPEC and non-OPEC, then I think prices will reach $60," writes Reuters on a statement by an OPEC delegate.
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