Investing.com - Saudi Arabia remains firmly committed to agreed output cuts despite a surprise rise in February production, analysts say.
Saudi Arabia told OPEC its output rose in February from January by 263,300 b/d to 10.011 million.
The Saudi energy ministry attributed the increase in output to ""operational factors"" and ""month-to-month variables.""
The IEA Wednesday estimated Saudi compliance with its agreed cut at 135% in the first two months.
Analysts believe Saudi Arabia has too much at stake not to see the output cuts through.
They see an extension of the cuts beyond six months more likely if market does not re-balance in the first half.
The IEA estimated OPEC compliance at 98% and non-OPEC at 37%.
OPEC has agreed output cuts of 1.2 mn b/d. Non-OPEC producers have also agreed to cut output by 558,000 b/d.
Oil recovered strongly Wednesday on a surprise fall in U.S. crude stocks.
It had slumped Tuesday on the Saudi output increase.