The Organization of the Petroleum Exporting Countries (OPEC) will return to relevance after three challenging years of sustained oil price declines and spending cuts on new drilling and equipment, an oil analyst said Tuesday.
Late last year, OPEC and major non-OPEC countries announced join production cuts of around 1.8 million barrels a day starting this year, a move that many are upbeat about.
Energy Aspects' oil analyst Virendra Chauhan said he expects an 80 percent compliance rate on the agreement. Non-OPEC producer Russia would keep its promise as the country needs energy prices to rise, he added.
"There will be a supply impact," Chauhan said.