OPEC+ oil production cut exceeded target 25% in December

Beijing. January 18. Silkroadnews - OPEC+ oil production cut exceeded the target 25% in December, the Kazakh Telegraph Agency (KazTAG) reports with reference to the Trend.
The level of conformity exceeded the expectations and reached 125% in December, Kuwait’s oil minister Bakheet al-Rasheedi said at the press conference on Wednesday, noting that some countries exceeded the cut target.
With this the minister emphasized, the agreement major objective is not the crude price, but the stabilization of the market.
Earlier, Russian Energy Minister Alexander Novak reported the conformity level of the deal has reached 122% on the results of 11 months of 2017.
To remind, oil production cut agreement was achieved in late 2016 by OPEC and non-OPEC oil exporting states. It says, the participants of the deal should reduce oil output by a total of 1.8 million bpd (the level was set as a base one for the deal by October 2016). Saudi Arabia, the largest OPEC producer has agreed to bear the largest cut in production of about 486 thousand bpd, Russia committed to reduce production gradually by 300 thousand bpd. Russia have reached the level committed in May this year and has been retaining it so far. Kazakhstan has made commitments to reduce oil production by 30 thousand bpd.
The agreement, originally in force in the first half of 2017, has already been extended twice: first - until the end of March 2018, and then recently - until the end of 2018. The aim of the agreement is to reduce a global excess in supply, which at the beginning of 2017 exceeded the five-year standard by 380 million barrels.