By Grant SmithJan. 15 (Bloomberg) -- OPEC’s compliance with record supply cuts announced last year slipped to 58 percent in December, down from 60 percent the previous month, according to the International Energy Agency.
The 11 members of the Organization of Petroleum Exporting Countries bound by production quotas raised output by 95,000 barrels a day to 26.6 million a day last month, the Paris-based IEA said in a monthly report today. That means OPEC exceeded its collective target by 1.8 million barrels a day.
OPEC, responsible for about 40 percent of global crude supply, announced an unprecedented series of production cuts in late 2008 amounting to 4.2 million barrels a day in response to collapsing global demand. Its commitment to that target faltered last year as prices rebounded by 78 percent.
Qatar and Saudi Arabia increased output the most in December, each boosting their production by 30,000 barrels a day, according to the IEA. Saudi Arabia, the group’s largest member and de facto leader, pumped 8.25 million barrels per day..."
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