OPEC output deal compliance slips to 78% in June: IEA

The International Energy Agency on Thursday said OPEC’s compliance rate to the output deal slipped to 78 percent in June, the lowest this year, from 95 percent in May.

Organization of Petroleum Exporting Countries (OPEC) was overtaken by the non-OPEC group – also part of the deal – whose compliance rate improved to 82 percent.

“OPEC crude output rose by 340,000 bpd in June to 32.6 million bpd after Saudi flows increased and Libya and Nigeria, spared from cuts, pumped at stronger rates,” IEA said.

Global oil supply, meanwhile, rose by 720,000 barrels per day (bpd) in June to 97.46 million bpd. Output stood 1.2 million bpd above a year ago.

Non-OPEC production is expected to expand by 700,000 bpd in 2017 and 1.4 million bpd in 2018, IEA said.

Global demand saw a “dramatic acceleration” in Q2 2017 to 1.5 million bpd.

For 2017 as a whole, IEA said the demand is forecast to reach 98 million bpd. A growth of 1.4 million bpd is foreseen for 2018, with global demand reaching 99.4 million bpd, the agency said.