Oil prices, on Friday, February 10, soared by about $1 after reports that members of the Organization of Petroleum Exporting Countries, OPEC, delivered more than 90 percent of the output cuts they pledged in a deal that came into force in January.
Global benchmark Brent crude LCOc1 was up $1.09 at $56.72 a barrel by 1400 GMT. It touched a session high of $56.73 a barrel earlier in the session.
U.S. West Texas Intermediate (WTI) crude futures CLc1 traded up 92 cents at $53.92 a barrel, Reuters reports.
Supply from the 11 OPEC members with production targets under the deal fell to 29.921 million barrels per day, according to the average assessments of the six secondary sources OPEC uses to monitor output, or a 92 percent compliance.
The International Energy Agency (IEA) – one of OPEC’s six sources – said the cuts in January equated to 90 percent of the agreed reductions in output, far higher than the initial 60 percent compliance with a 2009 OPEC deal.
“Some producers, notably Saudi Arabia, (are) appearing to cut by more than required,” the agency said in a report.
The IEA, which advises industrial nations on energy policy, said if current compliance levels are maintained, the global oil stocks overhang that has weighed on prices should fall by about 600,000 barrels per day (bpd) in the next six months.
The agency also raised global oil demand growth expectations for 2017 to 1.4 million bpd, up 100,000 bpd from its previous estimate.
