Russian President Putin will stick to oil output curbs, despite 60% rise in prices since last summer

OIL stockpiles are at their lowest level for more than three years as the Opec production cartel and Russia pledge to stick to a deal to curb output, the International Energy Agency said today.

Following the agreement in late 2016, global stockpiles have fallen by 80% to the lowest level since November 2014, the IEA said.

The dwindling supplies as well as strong global growth pushed the oil price to three-year highs above $70 a barrel this year before the turmoil which shook share and commodity markets. Brent crude edged up to $62.83 today.

Opec secretary general Mohammed Barkindo has said that Russian president Vladimir Putin will stick to the production pledge despite the 60% rise in prices in last summer offering the temptation to increase production.

Barkindo told CNBC he had “received assurances” from the Russian premier and added that “they have proved… beyond any reasonable doubt” their commitment to the agreement. “I think there’s no concern here. We are all in the same boat,” he said.

But the IEA also warned that the easing oil glut and rising crude prices could encourage even higher production from the US shale oil industry. US production could soon surpass Opec’s biggest producer Saudi Arabia, it added.