However, the compliance rate has not been spread evenly. Some countries, specifically Saudi Arabia, Kuwait and Angola, are over complying which is compensating OPEC members who are under complying.
For instance, Saudi Arabia produced 9.98 million bpd in January, well below its allocation of 10.06 million bpd.
Other counties, such as Algeria, Venezuela and Iraq, are producing more oil than their quota. Iraq in particular was singled out by the S&P Global Platts report, as its January output of 4.48 million bpd was well above its quota of 4.35 million bpd (although the report noted Iraq’s output had declined 150,000 bpd from December).
“Saudi Arabia is bearing the brunt of these cuts,” said Wang.
“They are going above and beyond, compensating a little bit for some of their cohorts within OPEC that are not quite in full compliance. Now how long Saudi Arabia is willing to shoulder the burden of these cuts if it proves some of their cohorts are not fully complying with the deal remains to be seen.”