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OPEC: Deeper crude oil output cuts are happening

OPEC Secretary General Mohammad Sanusi Barkindo said Tuesday that initial data suggests compliance with voluntary output cuts among oil exporters improved in February.

"They have just started coming in, trickling in, and they promise to be even much higher than the January figures of conformity," Barkindo said during a panel at the CERAWeek by IHS Markit conference in Houston.

Members of the Organization of the Petroleum Exporting Countries and other producing nations agreed last year to cut output by 1.8 million barrels a day in a bid to reduce brimming crude stockpiles.

A compliance committee will meet later this month to review February's production figures.

In January, OPEC said participating producers had made 86 percent of the reductions they promised. OPEC members' compliance was above 90 percent, according to multiple sources, with the lion's share of the reductions coming from Saudi Arabia.

OPEC sources said Russia and 10 other non-OPEC producers had delivered 60 to 66 percent of their pledged output cuts in January, Reuters reported last month.

Oil prices fell last week after data showed Russian production was roughly flat in February, indicating Moscow has not made further progress on achieving 300,000 barrels a day in reductions. It has so far cut production by about 100,000 barrels a day. The Russian Energy Minister Alexander Novak also spoke about Russia's relationship with OPEC at CERAWeek.

Earlier on Tuesday, Saudi Energy Minister Khalid al-Falih told CNBC Russia's cuts were coming more slowly then he would like. However, he said the country is improving its compliance in March.

Energy

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