Before start of new oil pact, OPEC makes progress in averting glut

LONDON: OPEC on Thursday said it cut oil output sharply in December before a new supply-limiting accord took effect, suggesting producers have made a strong start to averting a new glut.

In a monthly report, the Organization of the Petroleum Exporting Countries said its oil output fell by 751,000 barrels per day (bpd), month on month, to 31.58 million bpd in December, due to cutbacks led by Saudi Arabia, Libya and Iran.

OPEC, Russia and other non-OPEC producers, an alliance known as OPEC+, agreed in December to reduce supply by 1.2 million bpd from Jan. 1. OPEC's share of that cut is 800,000 bpd.