Oil Output Cuts Proceeding Faster Than Planned…WSJ

Here is Saudi oil minister al-Falih via The Wall Street Journal:

“Saudi energy minister Khalid al-Falih said OPEC’s 13 nations and 11 producers outside the cartel had made collective cuts totaling 1.5 million barrels a day since agreements were struck in late November and early December. Oil prices have risen nearly about 20% since those deals were made, despite widespread skepticism over whether OPEC and other producers would follow through.”

“Mr. Falih reiterated comments that his country—the world’s largest exporter of crude oil—had already cut its output by more than promised, to less than 10 million barrels a day. He predicted more cuts to customers in February and said output wouldn’t go back above 10 million barrels a day.

OPEC officials on Sunday estimated its compliance level at 80%, meaning about four-fifths of the oil it pledged to cut has been slashed. That is a faster rate than in 2009, when the cartel had a compliance rate of about 57% a month after its agreement.

Here is the link:  http://www.wsj.com/articles/saudis-russians-say-oil-output-cuts-proceeding-faster-than-planned-1485084865

Note that oil prices are just slightly above levels as early December, just after the OPEC meeting… Here is the chart from barchart.com: