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OPEC Still Waiting for Evidence Oil Cuts Are Doing Their Job

  • Stockpiles, seen as key gauge of success, still rising in U.S.
  • OPEC committee sees group’s compliance at 90%, allies at 60%
Bloomberg business news

OPEC's Barkindo Demands 100% Compliance on Output Cuts

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OPEC officials this week hailed the “excellent” and “unprecedented” implementation of their agreement to cut oil production, but were still waiting for solid evidence that the deal was fulfilling their key measure of success and shrinking the global glut.

A reduction in the amount of oil held in storage around the world is the most important factor for the Organization of Petroleum Exporting Countries, Qatar’s Energy Minister Mohammed Al Sada said at the IP Week conference in London Wednesday. The pace of that decline will determine the group’s next move, including whether to extend the accord beyond its initial six-month term, said OPEC Secretary-General Mohammad Barkindo.