OPEC detects high compliance with oil cut deal

Paris: OPEC said on Tuesday oil producers have kept their promise to cut output in accordance with a landmark deal designed to lift petroleum prices.

As a result, prices rose in February as last year´s accord between OPEC members and some non-members gained traction, the Organisation of the Petroleum Exporting Countries said in its monthly oil report.

The oil price recovery was, however, under threat from fresh supply as high-cost producers in the United States started drilling again, encouraged by the price upswing, as well as from rising Canadian production.

An OPEC oil price reference basket rose by about two percent to an average of $53.37 in February, the organisation said. "High compliance with supply adjustments by OPEC and some non-OPEC producers supported gains," it said.

In December, OPEC agreed with 11 non-members, including Russia, to cut output in the first half of this year to push prices higher. Looking at the oil futures market, a key gauge of pent-up demand, OPEC said a record number of investors were placing wagers on price increases.