PARIS – The International Energy Agency says the rate of compliance by OPEC countries to their agreed production cuts fell sharply in June, one reason why oil prices dropped to 2017 lows in recent weeks.
In a monthly update, the Paris-based agency said Thursday it estimates compliance fell to 78 per cent in June from 95 per cent the previous month.
However, it noted that compliance should be judged over the whole period of the production cut to March 2018, rather than just one month.
One positive for oil prices could be a rebound in global demand growth, which the IEA estimated at 1.5 million barrels per day in the second quarter of 2017 from 1 million in the first.
Brent crude, the international standard, was down 21 cents at $47.53 a barrel.