Reuters OPEC survey reveals interesting results
Reuters monthly survey of OPEC oil production on Dec. 2 caught the attention of oil traders looking for evidence of supply cuts by the exporter group. The survey showed that OPEC in November had delivered on 66 percent of its promise to lower output by 1.5 million barrels per day, raising questions about some members’ commitment to the cutbacks and doubts whether a further round of reductions would be agreed at a meeting on Dec. 17. The Reuters survey was quoted by several analysts as the reason for the drop in oil prices on the day, which settled at $46.96 a barrel, the lowest since May 2005. “One issue with which the market was forced to contend with was a Reuters survey indicating that OPEC compliance to latest production agreements is only amounting to about 66%, a figure considerably below the 85% level that some of the oil ministers have recently alluded to,” said oil analyst Jim Ritterbusch.