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…As Barkindo acknowledges improved compliance with supply cut deal

…As Barkindo acknowledges improved compliance with supply cut deal

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Secretary General of the Organisation of Petroleum Exporting Countries (OPEC), Mr Mohammad Barkindo, disclosed yesterday that compliance with a supply cut agreement between OPEC and non-OPEC members was improving, stressing it would help the oil market to weather through the build up of inventories. 

“There is a remarkable improvement on the level of compliance,” Barkindo said. 

“The market will weather through a possible rebuild of inventories, which is our focus of attention, and ensure that we have supply-demand balance through the quarters,” he added. 

“We are super focused on this common objective.”

Oil prices have hit a two-month high to rise above $63 a barrel due to supply cuts led by the Organisation of the Petroleum Exporting Countries (OPEC) and sanctions imposed by the US against Venezuela that offset forecasts of a global economic slowdown. 

Brent crude LCOc1 rose 49 cents at $63.24 and later hit $63.40 a barrel, while US crude CLc1 was up 9 cents at $55.35, Reuters reported.

In January, the oil cartel and its members started a new round of supply cuts, which were led by Saudi Arabia and have been compounded by involuntary losses.

Despite OPEC’s supply cuts, the US is increasing its supply. Nonetheless, figures revealed a fall in the US rig count to their lowest in eight months, lifting oil prices.

“There’s no sign of overhang in the crude oil markets.”

Petromatrix oil analyst Olivier Jakob said: “You have the sanctions on Venezuela, on top of the reduced supply from Saudi Arabia.

“There’s no sign of overhang in the crude oil markets.”

According to a survey by the news agency, OPEC supply declined in January by the largest amount in two years.

Analysts said that the sanctions imposed by the US on Venezuela’s state-run oil firm PDVSA are expected to restrict oil transactions between Venezuela and other countries.

The post …As Barkindo acknowledges improved compliance with supply cut deal appeared first on The Sun Nigeria.

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