OPEC’s secretary general said its member and non-member countries part of a production-cut agreement are showing improved conformity in March to the deal meant to bring global inventories down to the industry's five year average and restoring stability to the market.
Mohammad Sanusi Barkindo, OPEC Secretary General, said at an Abu Dhabi event that March production data is showing an even better performance compared to February, with a higher conformity.
In February Conformity to the adjustments stood at 94 per cent, which was eight percentage points above the January figure, Barkindo said.
The Organization of the Petroleum Exporting Countries agreed with members and 11 non-member countries led by Russia agreed to cut production to 1.8 million barrels per day for a six-month period starting January.
“I am indeed very confident our collective action will continue to prove effective and bring us the results we are seeking,” he said.
The pact helped lift oil prices to about $55 a barrel after a two-year slump. OPEC will review policy for the second half of this year at a May 25 meeting.
“We are monitoring this process very closely through a Joint Technical Committee (JTC) that convenes every month and reports to a five-Member Joint Ministerial Monitoring Committee (JMMC), which meets bimonthly to oversee overall progress,” he said.
Separately, OPEC announced a new Smart App version of the group’s Annual Statistical Bulletin (ASB) as it looks to broaden data transparency.
It unveiled new multi-year ‘Big Data’ project, which is in partnership with the UAE Energy Ministry and is aimed at developing a “sophisticated, comprehensive and easy-to-use multi-dimensional big data tool for analysing publicly available oil and gas data.”