OPEC+ compliance with Oil Output Cuts near 130% in January

OPEC+ compliance with oil output cuts rose to 129% in January, as manufacturers fell similarly at the back of their objectives and signaled a tighter marketplace that might push the cost higher.

OPEC+ groups the Organisation of the Petroleum Exporting Countries and others including Russia, is undoing output cuts put in place after the pandemic slashed demand. The group has aimed at restoring an additional 400,000 barrels per day each month since August, but not all producers are not keeping up with the individual targets.

West African producers Nigeria and Angola, have faced outages and struggled with limited investment. The 129% obedience would be the highest in more than two years and marks a rise from 122% in December and 117% in November.

Benchmark traded as high as $95 on Monday as the market remained tight due to a recovery in demand. The head of the International Energy Agency’s Fatih Birol has asked OPEC+ to narrow the gap between their oil production targets and actual output. The last month's IEA report has also mentioned that the gap between the target and output in January has widened to 900,000 BPD.