OPEC and outside producers including Russiawill boost compliance with agreed oil output curbs in a bid to clear a supply glut that has weighed on prices, the group’s secretary general said on Tuesday.
OPEC Secretary General Mohammad Barkindo also said he was “cautiously optimistic” on the outlook for the oil market, almost two months into the group’s supply cut deal with Russia and other producers.
“Confidence has returned to this market,” he said at a news conference at Energy Institute’s IP Week, an annual gathering of the oil trading industry in London. “It’s work in progress, but the trend I think has commenced.”
Oil prices rose after the comments, trading above $57 a barrel in London. Crude, while up from the low $30s a year ago, is still half its level of mid-2014 because of a persistent supply glut.
The Organization of the Petroleum Exporting Countries is curbing its output by about 1.2 million barrels per day (bpd) from Jan. 1, the first cut in eight years. Russia and 10 other non-OPEC producers agreed to cut half as much.
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