Friday, 10 February 2017 - 17:09
Oil prices rise on 90 percent compliance on OPEC output deal


Today, the oil prices rose more than 1 percent after the International Energy Agency (IEA) reported record initial compliance by OPEC members effecting last year's landmark deal to curb output in an effort to prop up global oil prices, foreign media reports stated.

Members of the Organization of the Petroleum Exporting Countries (OPEC) made production cuts in January that equated to 90 percent of the agreed volumes, a record high for the first month of implementation for such deals, the IEA said in an exclusive report.

"Some producers, notably Saudi Arabia, (are) appearing to cut by more than required," the agency stated.

Global benchmark Brent crude LCOc1 was up 66 cents at 56.29 a barrel by 0938 GMT, touching a session high of $56.39 a barrel shortly after the report was published.

U.S. West Texas Intermediate (WTI) crude futures CLc1 traded up 56 cents at US Dollars 56.56 a barrel.

The IEA, which advises industrial nations on energy policy, went on to say that if current compliance levels are maintained, the global oil stocks overhang that has weighed on the prices would fall by about 600,000 barrels per day (bpd) within the next six months.

The Official OPEC compliance data is due to be published next week.

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