UPDATE: Min: OPEC, non-OPEC compliance with oil cut deal near 100%

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ST. PETERSBURG, Jul 24 (PRIME) -- OPEC and non-OPEC states almost fully complied with an oil production cut agreement over the past six months, Russian Energy Minister Alexander Novak said Monday at a meeting of the ministerial committee for monitoring the agreement’s fulfillment.

“The countries showed an unprecedented high level of discipline and compliance, which over six months stands at a level close to 100%, and in some countries even more than 100%,” Novak said.

As a result of the agreement’s fulfillment, the countries managed to remove over 350 million barrels of oil from the market, he added.

“Collectively, more than 350 million barrels of oil supply were removed from the market in the first half of the year,” he said.

Kuwait Oil Minister Essam Al-Marzouq said that in June, OPEC and non-OPEC countries fulfilled the oil cut agreement by around 90%.

OPEC states agreed to reduce production by 1.2 million barrels daily to 32.5 million barrels in November 2016. In December 2016, 11 non-OPEC countries agreed to cut their combined output by 558,000 barrels, including Russia, which has agreed to slash production by 300,000 barrels daily compared with the level of October 2016. The agreement was concluded for January–June and was prolonged for nine more months in May.

Saudi Arabian Energy Minister Khalid Al-Falih said that OPEC and non-OPEC states continue to support oil production recovery in Libya and Nigeria, but should attentively monitor the process.

“One more important factor the oil market is currently focused at is growth of supplies by Libya and Nigeria. These two countries were exempt from liabilities under the agreement. And we certainly continue to support our brothers and sisters from these two countries in their efforts to restore the oil industry and economy. “The (ministerial monitoring) committee should, however, attentively monitor the impact of such growth on the balance of supply and demand in the world,” he said.

OPEC Secretary General Mohammed Barkindo told RBC television channel that he expected zero growth of oil output in OPEC countries, while in countries outside OPEC, including the U.S., production will grow.

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