OPEC oil output cut deal exceeded by 33%

OPEC oil output cut deal exceeded by 33%

OPEC Secretary-General Mohammad Barkindo said that the organization registered 133% compliance with agreed output reduction targets in January across all participating OPEC and non-OPEC countries.

According to Barkindo, compliance last year stood at 107% and that OPEC and non-OPEC producers would hold a technical meeting in June, Reuters reported.

Sberbank CIB analyst Valery Nesterov, speaking with a correspondent of Vestnik Kavkaza, noted that regular reports of OPEC+ deal participants are not just about fulfilling a deal, but about its substantial over-fulfilling are part of the information confrontation of too positive US statistics in the struggle for the sentiment of traders.

"It's a desire to show that the oil output cut deal is all right, since there is a real information war, including with US shale oil producers. OPEC, in partnership with Russia, is protecting from the growing production of oil and gas in the US, as it will have more influence on prices in the future. In this case, there is an opportunity to show the unity of the deal participants, their fidelity to their obligations, which helps support prices. Current price volatility shows that verbal interventions play a big role in the oil market," he pointed out.

In the course of time, they will have to increase a positive nature of statements. "In three weeks there will be a new statement from Mohammed Barkindo. I would link today's statement to the new forecasts released by the US Energy Ministry, which were disturbing for the world market, in particular, for OPEC. Now OPEC+ should show a cohesion,it's not about an additional output cuts, because no one wants to lose markets - that is why they will continue to make such statements," Valery Nesterov expects.