OPEC's technical committee and non-OPEC oil producers said on Tuesday that its compliance with production cuts- at July's rates- is 159%, higher than expected under a supply-cut deal.
Asource from the Technical Committee confirmed that the rate of commitment to productionscut amounted to 159% in July, while producers from outside the organizationimplemented reductions by 166%, as Reuters quoted its Russian counterpart, TASS.
Saudicrude oil exports fell in June from a month earlier, while Saudi Arabia keepsproducing less than 10 million bpd to help clear a global supply glut and boostoil prices, according to Reuters.
Thekingdom of Saudi Arabia, the world's largest crude exporter, exported 6.721million bpd in June, down from 6.942 million bpd in May, according to the JointOrganizations Data Initiative Oil (JODI-Oil), and pumped 9.782 millionbpd in June, up from 9.670 million bpd in May.
The Agencyquoted a Saudi oil official, earlier this month, that the Kingdom of SaudiArabia intends to keep oil exports less than seven million bpd in August andSeptember despite strong customer demand, to restore balance to the market.
In July, OPEC and Russia-led allies agreed to extend oil production cuts until March 2020 to support crude prices as the global economy weakens and US output rises, according to monthly export figures provided by Saudi Arabia and other OPEC members for the JODI-Oil Initiative.
Oilprices rose on Tuesday on optimism about easing trade tensions between theUnited States and China and hopes that major economies will adopt stimulusmeasures to ward off a possible economic slowdown that could hurt oil demand.
Brentcrude rose eight cents to $59.82 a barrel, and US crude rose nine cents to$56.30 a barrel, while the United States said that it would extend a deadlineto allow Huawei Technologies to buy components from US companies.
Themove, according to observers, signals a slight easing of the conflict betweenthe world's two largest economies. Also, crude prices have also supported theupward trend of equities around the world with growing expectations that globaleconomies will move to address slowing growth.
A Reuterspoll of seven analysts found that US crude inventories were expected to fall by1.9 million barrels in the week ended on Aug. 19, while the American PetroleumInstitute would release inventories data later.
