Intercession estimates production cut compliance fell to 78% in June from 95% in May
The Associated Flock Posted: Jul 13, 2017 9:56 AM ET Last Updated: Jul 13, 2017 12:19 PM ET
The Global Energy Agency says the rate of compliance by OPEC countries to their came production cuts fell sharply in June, one reason why oil prices fell to 2017 lows in recent weeks.
In a monthly update, the Paris-based workings said Thursday it estimates compliance fell to 78 per cent in June from 95 per cent the antecedent to month.
However, it noted that compliance should be judged once again the whole period of the production cut to March 2018, rather than only one month.
One positive for oil prices could be a rebound in global demand cultivation, which the IEA estimated at 1.5 million barrels per day in the second quarter of 2017 from 1 million in the beginning.
Brent crude, the international standard, was up 54 cents at $48.28 US per barrel in ancient afternoon trading.