OPEC and Non-OPEC Crude Oil Production Agreement: Compliance Status [May 17, 2017] [open pdf - 173KB]
"Recently, the global oil market has been oversupplied. According to the Energy Information Administration (EIA), except for the third quarter of 2016, oil production exceeded consumption since the third quarter of 2014. As a result, commercial stocks of crude oil and petroleum liquids have been at five-year highs and there has been downward pressure on benchmark (e.g., West Texas Intermediate, or WTI, and Brent) crude oil prices […] OPEC's production decision and the resulting price declines were interpreted by some to be anti-competitive and a targeted effort to put price pressure on U.S. tight (shale) oil producers, which had steadily increased production since 2008 and contributed to the oversupply situation […] On November 30, 2016, in an effort to address low prices and global oversupply, OPEC announced an agreement (the 'Vienna Agreement') under which the organization would reduce crude oil production by 1.2 million barrels per day (bpd) from October 2016 levels for an initial six months starting January 2017. OPEC also indicated its plans to 'institutionalize a framework' with non-OPEC countries to manage crude oil production levels. On December 10, 2016, OPEC announced that a group of 11 countries had joined the Vienna Agreement and had committed to reduce oil production by 558,000 bpd."
CRS Insight, IN10705
Federation of American Scientists: http://www.fas.org/sgp/crs/index.html