The Organisation of the Petroleum Exporting Countries (OPEC) and its allies, together called OPEC+, had 102 per cent compliance with their agreement to cut oil supply in September, two OPEC+ sources told Reuters ahead of a meeting of the OPEC+ technical committee on Thursday to review the oil market.
Oil prices edged down on Wednesday under pressure from growing concerns that a recovery in fuel demand will be stalled by soaring coronavirus cases around the world.
The West Texas Intermediate (WTI) for November delivery lost 8 cents to settle at 40.88 USA dollars a barrel on the New York Mercantile Exchange, while Brent crude for December delivery decreased 23 cents to 42.93 dollars a barrel on the London ICE Futures Exchange.
Futures in NY edged lower on Friday, but still managed to record an advance of 0.7 percent this week on shrinking USA crude stockpiles and signs of improving demand in China and India.
A Joint Technical Committee, which includes representatives from key OPEC+ producers such as Saudi Arabia and Russian Federation, met to review compliance with its global oil output cuts. The scenario involves commercial inventories from major world consumers remaining higher than the five-year average in 2021, rather than falling below that mark.
Some European countries were reviving curfews and lockdowns to fight a surge in new coronavirus cases, with Britain imposing tougher COVID-19 restrictions in London on Friday.
A ministerial OPEC+ panel, known as the Joint Ministerial Monitoring Committee (JMMC), will consider the outlook when it meets on Monday. The JMMC can make a policy recommendation. "What everybody is wondering is if there will be any action against the laggards this time or if the bashing will stay at a verbal level".
"The outlook in Asia could be the reason OPEC+ alliance remains confident the market can withstand another 2 million barrels per day in the market", ANZ Research said in a note.
The total rig count fell to a record low of 244 rigs during the week-ended August 14, while oil rigs alone fell to a 15-year low at 172 in the same week, according to Baker Hughes data going back to 1940.
The American Petroleum Institute industry group said U.S. crude, gasoline and distillate inventories all fell in the week to October 9, according to a report released after market close on Wednesday.