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Opec partners' oil supply cuts faltered in February, IEA Says
[LONDON] The 11 countries co-operating with Opec's bid to re-balance world markets faltered in their delivery of supply cuts last month, according to the International Energy Agency.
Led by Russia, the nations reduced output by 240,000 barrels a day from October-November levels, or 43 per cent of their promised 558,000-barrel reduction, according to Bloomberg calculations using preliminary data from the agency. That's lower than the January reduction of 274,000 barrels, or 49 per cent, as Kazakhstan pressed on with the ramp up of its Kashagan oil field.
Opec's partners are lagging behind the organisation, which implemented 91 per cent of its pledged reduction last month, according to IEA data.
Saudi Arabian Energy Minister Khalid Al Falih said in Houston last week that while the kingdom had cut more than necessary to lead by example, it wouldn't "bear the burden of free riders" indefinitely.
A five-nation committee composed of both Opec and non-Opec nations will meet in Kuwait on March 25 to review progress with the accord. Ministers will gather on May 25 to decide whether the curbs should be prolonged before they expire in June.
The percentage estimates differ slightly from the IEA's own assessment, which put compliance among non-Opec producers at 40 per cent in January. The agency didn't give a comparable figure for February. Bloomberg's methodology uses October output levels as the baseline for 10 of the nations except Kazakhstan, which said its performance would be relative to November.