Crude oil supply from OPEC is rising to the highest in 14 months led by Angola and Saudi Arabia, a survey showed, further reducing compliance with output targets.
Supply from the 11 OPEC members with output targets, all except Iraq, is averaging 26.80 million barrels per day (bpd), up from a revised 26.69m bpd last month, according to the survey of oil firms, officials and analysts.
The survey implies OPEC has made 53 per cent of promised supply cutbacks versus 56pc last month.
OPEC meets to set policy on March 17 and the widening gap between its supply target and actual output is likely to be a main topic of debate.
Even so, analysts said the extra barrels were not unwelcome in the market given that oil prices remain within the range favored by many members and inventories, which ballooned last year due to falling demand, were coming down.
‘OPEC told us that given the current economic environment, their goal is oil at $70 to $80. As long as prices are in that range, they are happy,’ said Societe Generale analyst Mike Wittner.
(Gulf Daily News)