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OPEC cut 65 per cent of production so far

business Updated: Feb 13, 2009 20:20 IST
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Members of the Organisation of Petroleum Exporting Countries (OPEC) have implemented nearly two-thirds of the production cuts of 4.2 million barrels per day (b/d) they agreed to last September, an OPEC report said on Friday.

In its monthly market report, the Vienna-based cartel also further reduced its global demand estimates for 2009.

OPEC members, excluding Iraq, have reduced their total oil output by 2.7 million b/d so far, 64.7 percent of the amount they agreed to slash in two steps since September.

"Basically OPEC discipline seems to be quite good," said Ehsan Ul-Haq, head analyst at JBC Energy in Vienna. Compliance with agreed production levels could reach 75 per cent, he said.

OPEC said global oil consumption would shrink by 0.67 per cent to 85.13 million b/d this year, lowering its previous forecast by 530,000 b/d.

Owing to the current economic depression, demand in industrialised countries would drop by 2.38 per cent, the report predicted.