Baku, February 10, AZERTAC
OPEC decided to cut oil production by 1.2 million barrels per day, capping the output at a daily 32.5 million barrels, according to Sputnik News. The deal went into effect in January 2017. Saudi Arabia and some other producers cut supply by more than required, the IEA estimated.
OPEC and eleven non-OPEC countries agreed late last year to cut oil production in order to shore up plunging oil prices.
"OPEC crude production fell by 1 mb/d to 32.06 mb/d in January, leading to record initial compliance of 90% with the output agreement," the IEA report reads.
Oil production in countries outside the Organization of the Petroleum Exporting Countries (OPEC) is projected to rise by 0.4 million barrels a day this year, the report said.
The IEA estimates that OPEC cut its output by 90 percent of what was agreed upon, to 32.1 million barrels a day. Non-OPEC participants agreed to cut 558,000 barrels a day and have been acting on the commitment, with IEA data showing Russia slashed its output by 100,000 barrels a day in January.
On the global scale, oil supplies dropped by almost 1.5 million barrels a day, with both OPEC and non-OPEC countries producing less. A year ago, world oil production stood at 96.4 million barrels a day.
In December 2016, OPEC states decreased oil production by 221,000 barrels per day in December 2016 down to 33.08 million barrels amid the deal on oil output curtailment.