Saudi Energy Minister Khalid al-Falih told CNBC that a coordinated pact by the Organization of the Petroleum Exporting Countries (OPEC) and key producers outside the cartel to trim supplies to the market is on track and that the Kingdom plans to lead by example to cajole continued compliance.
Saudi Arabia, the world’s top oil exporter, is leading the effort to trim nearly 1.8 million barrels per day from the market in the first six months of the year to even the supply and demand balance and support prices. The complex deal includes exemptions for Libya and Nigeria and a higher output quota for Iran on the OPEC leg and is joined by other producers including heavyweight Russia.
Slightly more than two months into the deal however, questions are being raised about compliance with the pledged cuts. But Falih said the effort will gather pace.
“I can tell you that in the first four months we will be well above our commitment,” Falih told CNBC on Thursday. “So we committed, but we seek equal commitment by others.”
Kuwait is scheduled to host a ministerial meeting on March 26 with OPEC and non-OPEC nations to review compliance with the output agreement and discuss whether the cuts would be extended beyond June.