In November last year, when OPEC members agreed to cut production for the first time since the Great Recession, it was welcomed with great optimism and oil price jumped more than 20 percent, from $45 per barrel to as high as $55 per barrel (WTI). However, that optimism faded amid higher production from the United States and reports of impatience within the OPEC with lower oil price. Even a fresh agreement in May, between the OPEC and participating non-OPEC producers, failed to lift price. The oil price has declined more than 15 percent since the May agreement. In this article, we review the compliance among OPEC members.

According to data from secondary resources, the OPEC failed to comply with the agreed production deal in June, though it remains compliant on the basis of average production. However, it is important to note that overall production from OPEC including the exempted members like Nigeria, and Libya increased by 393,000 barrels per day and some members are yet to comply with the agreed level of output.

Algeria, Ecuador, Gabon, Iraq, Kuwait, and the United Arab Emirates are yet to fully comply with the deal. We would continue to monitor the level of compliance with the deal. WTI is currently trading at $45.3 per barrel and Brent at $2.2 per barrel premium to WTI.