Oil prices started to accelerate more than 1% today after the International Energy Agency (IEA) announced record initial compliance by Organization of the Petroleum Exporting Countries (OPEC) members implementing last year’s landmark deal to curb output in an effort to prop up global oil prices.
Members of OPEC made production cuts in January equating to 90% of the agreed volumes, a record high for the first month of implementation for such deals, the IEA mentioned in a report.
Some producers, notably Saudi Arabia, (are) appearing to cut by more than required,” the agency said.
Image source: Thomson Reuters
Global benchmark Brent crude LCOc1 was up 66 cents at 56.29 a barrel by 09:38 GMT, touching a session high of $56.39 a barrel shortly after the report’s publication.
U.S. West Texas Intermediate (WTI) crude futures CLc1 traded up 56 cents at $56.56 a barrel.
The IEA also commented that if current compliance levels are maintained, the global oil stocks overhang that has weighed on prices should fall by about 600,000 barrels per day (bpd) in the next six months.