OPEC Member States and Oil Producing Countries “Commit” to Reduce Oil Production

Saudi Arabia’s energy minister, Khalid al-Falih, said Wednesday that Saudi Arabia, a major member of OPEC, had received promises from OPEC members and their oil-producing allies to cut oil production in accordance with current production agreements, according to Prussian Energy

He said there was “no doubt” that some major producers were complying with their reduction commitments and agreed to implement them between January and June.

“I’ve talked to many ministers who have made slow progress in achieving their goals in January and are committed to implementing their commitments quickly in the next six months,” Falih said on the sidelines of an industry event in New Delhi.

Saudi Arabia is the driving force behind the recent 1.2 million barrel/day cut, which aims to boost oil prices. Oil prices plunged from $86 a barrel in October to $50 a barrel at the end of 2018.

Just a week before Falih’s comments, OPEC Secretary-General Mohammad Barkindo urged OPEC Member States and their 10 allies to “remain firm in achieving the target of reducing production”. Previous reports have suggested that some producers, especially Russia, Iraq and Nigeria, have failed to meet their targets.

OPEC research estimates that its 14 member countries produced 30.81 million barrels a day in January, down nearly 800,000 barrels from 31.6 million barrels in December.