OPEC+ Underproduction Is Pushing Oil Prices Higher

The compliance of OPEC+ producers with their output cut surged in January, suggesting that the gap between nominal monthly output quotas and actual supply to the market continued to widen. OPEC+ members complied with a massive 129 percent of the production cuts last month, an OPEC+ source told Reuters on Monday. That’s up from 122 percent compliance in December and a compliance rate of 117 percent in November. In January 2021, OPEC producers’ compliance jumped to 133 percent, while the non-OPEC members of the OPEC+ pact had their overall…