Kuwait: OPEC compliance with cuts drops from 140% to 102%

The possibility of extending an OPEC oil output cut will be discussed after a monitoring meeting due later this month in Kuwait, the Kuwaiti Minister of Oil and Minister of Electricity and Water Essam Al-Marzouq said on Thursday, as reported by KUNA (Kuwait News Agency).

Key highlights (via KUNA)

• An OPEC ministerial committee for monitoring commitment of the output cut is due to meet here on March 26
• Last November, OPEC members concluded a deal in Vienna to cut production by around 1.2 million barrels per day (bpd), or over 3 percent, to 32.5 million bpd. Non-OPEC producers voluntarily decided to reduce output by 600,000 barrels per day. Russia alone will cut 300,000 barrels daily.
• Al-Marzouq said that commitment by the OPEC member of the output reduction decision initially hit 140%, but then fell to 102%.
• Non-OPEC producers honored the decision by about 50 percent.
• The Kuwait meeting will review a report by a technical committee of the monitoring one that will meet March 24
• Al-Marzouq referred to meetings on the sidelines of the CERAWeek between OPEC Secretary General Mohammad Barkindo and the US shale oil producers who promised not to increase production if the crude prices fall.

At the moment, WTI is retreating 1.77% at $49.41.