Global oil supply fell by 1.4 million barrels per day (mb/d) in January to100.6 mb/d, led by the Organization of the Petroleum Exporting Countries (OPEC) producers' cut agreement made in Vienna in December, according to data of the International Energy Agency (IEA) on Wednesday.
According to the IEA's Oil Market Report, OPEC crude output was 930 thousand barrels per day (b/d) lower in January at 30.83 mb/d, a near four-year low.
Compliance with the Vienna Agreement was 86 percent, with Saudi Arabia, the United Arab Emirates, and Kuwait cutting more than promised.
"Compliance by non-OPEC participants was only 25 percent," the IEA said.
Growth in demand in 2019 is expected to be 1.4 mb/d, unchanged from the IEA's last report.
"It is supported by lower prices and the start-up of petrochemical projects in China and the U.S. Slowing economic growth will, however, limit any upside," the agency warned.
- Vienna Agreement comes into effect on Jan.1
OPEC member countries and 10 non-OPEC producers agreed to cut supplies by 1.2 mb/d from Jan. 1 for six months, based on October 2018 levels at the OPEC/non-OPEC ministerial meeting in Vienna on Dec. 7, 2018.
OPEC will shoulder 0.8 mb/d of the cuts - equivalent to roughly 2.5 percent of its total output, and non-OPEC will endure the remaining 400 thousand b/d in cuts, or about 2 percent of its total.
By Gulsen Cagatay