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Non-OPEC oil producers keep on pumping, deliver just 64% of pledged output cuts in Feb, source says


Eleven non-OPEC oil producers that joined a global deal to reduce output to boost prices delivered 64 percent of promised cuts in February, an industry source said on Friday, still lagging the higher levels of OPEC itself.

The Organization of the Petroleum Exporting Countries (OPEC), Russia and other producers agreed to cut production by 1.8 million barrels per day (bpd) from Jan. 1 to boost prices and reduce a supply glut.

On Thursday, Saudi Energy Minister Khalid Al-Falih urged better delivery from exporters that have vowed to reduce their oil supply.

"It's a learning process for some countries and we want them to accelerate that learning and get on board fully," he told CNBC.

Compliance numbers were reviewed at a meeting in Vienna on Friday comprised of officials from countries monitoring adherence to agreed output levels — OPEC members Kuwait, Venezuela, Algeria plus non-OPEC Russia and Oman.

Russia plans to step up its adherence, saying on Friday that it will cut output by the full amount it had pledged — 300,000 bpd — by the end of April and will maintain that level until the deal expires at the end of June.

Last week, Al-Falih told CNBC that Russia had cut more slowly than he would have liked in the first two months of the deal, but confirmed Moscow was accelerating reductions in March. Saudi Arabia has provided the lion's share of output curbs to date.

The meeting on Friday also discussed OPEC's own compliance, which it put at 106 percent, in line with figures published in OPEC's latest monthly report on Tuesday.

The panel, which met at OPEC's headquarters in Vienna, is the Joint Technical Committee (JTC) established in January as part of efforts to monitor adherence to supply cuts.

Top OPEC producer Saudi Arabia is also a member of the JTC in its capacity as 2017 OPEC president.

— CNBC's Tom DiChristopher contributed to this report.