Jan. 5 (Bloomberg) -- OPEC is likely to make all the oil production cuts promised at its last meeting, causing global crude stockpiles to fall this quarter, an official from a Persian Gulf member of the group said.

Full implementation of the 4.2 million-barrel-day reduction in supplies will send inventories below their five-year average, said the official with direct knowledge of OPEC’s deliberations, declining to be identified by name because he isn’t authorized to speak publicly. It’s unlikely the group will meet before its scheduled meeting on March 15, he said.

The Organization of Petroleum Exporting Countries agreed at its Dec. 17 meeting in Oran, Algeria to reduce its total production targets for its 11 members with quotas, excluding Iraq, to 24.845 million barrels a day. Saudi Arabia, the world’s largest exporter, had its target cut 5.1 percent to 8.051 million barrels a day.

“The United Arab Emirates has already reduced supplies for January and February by 15 percent, the Saudis have already made significant cuts,” Johannes Benigni, chief executive officer of Vienna-based JBC Energy, said in an interview with Bloomberg Television today. “You can feel the OPEC cuts already.”

Crude oil futures for February delivery rose as much as $2.34, or 5.1 percent, to $48.68 a barrel in electronic trading today on the New York Mercantile Exchange. The contract traded at $47.45 a barrel at 2:59 p.m. London time. Prices have gained 19 percent since OPEC’s last meeting.

Oil Stockpiles

Oil stocks in OECD countries at the end of October were equivalent to 56.8 days of forward demand cover, 4.1 days higher than a year earlier and the five-year average, according to a Dec. 11 report from the International Energy Agency. Oil demand in 2008 fell for the first time since 1983, the IEA estimated.

Oil consumption may fall by about 700,000 barrels a day this year as the global economy slows, according to Deutsche Bank AG.

The 4.2 million barrel reduction is from OPEC’s September production levels and includes an earlier cut that took effect on Nov. 1

To contact the reporter on this story: Ayesha Daya in Dubai adaya1@bloomberg.net.

Last Updated: January 5, 2009 10:11 EST