The International Energy Agency’s (IEA) latest oil market report paints a picture of crumbling production quota compliance among OPEC members. Compliance fell to just 58% in January from 61% in December.
Nations such as Algeria, Ecuador, Qatar, and Venezuela are paying little heed to OPEC efforts at limiting crude oil supply:
Moreover, as shown above by the difference between Jan 2010 Supply and Sustainable Production Capacity, OPEC surplus production capacity is enormous. This adds a further incentive (in addition to economic hardship in certain OPEC nations) to produce more oil than set forth by OPEC — which means more oil supply to help ease prices worldwide.
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