Industry at a glance ///

The 11 OPEC countries subject to the well-publicized production cuts achieved more than 90% compliance with the agreed reductions. Saudi Arabia slashed its output by the most in eight years, going beyond its obligations under the deal. Combined, the group’s output fell 890,000 bopd in January, to around 29.3 MMbpd to 32.1 MMbpd, in spite of Iraq, Venezuela and Iran pumping more than allowed under the accord. The reduction helped establish a solid floor under benchmark crudes at $51–$54/bbl. The reduction in crude output has caused U.S. drillers to continue to add rigs in the oil-rich shale plays. In January, U.S. rig usage averaged 683 units, a 7.7% increase compared to 634 working in December 2016. The international count gained 50 rigs in December, an increase of 4.5% compared to November.

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