IEA: OPEC is sticking to its agreement to cut oil production like never before

pulse

February 10, 2017 1:34 PM

OPEC has received an early and key endorsement of its effort to reduce the global oversupply of oil, and crude is surging.

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The Organization of Petroleum Exporting Countries (OPEC) has received an early and key endorsement of its effort to reduce the global oversupply of oil.

On Friday, the — a global energy watchdog — said OPEC had achieved 90% compliance with its agreement last year to lower production. Saudi Arabia, the IEA said, appeared to cut more than was agreed on at the meeting with some key non-OPEC members in November.

The IEA's oil market report for February said, "

However, the solution to the oil market's imbalance still rests heavily on US shale producers.

"US shale is coming back, and it’s coming back strong," said Mark Keenan, a commodity strategist at Societe Generale, in a recent note. He cited the rise in rig counts and improving job growth in the energy sector as part of the evidence for this.

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