OPEC and eleven non-OPEC countries agreed late last year to cut oil production in order to shore up plunging oil prices.
"OPEC crude production fell by 1 mb/d to 32.06 mb/d in January, leading to record initial compliance of 90% with the output agreement," the IEA report reads.
Oil production in countries outside the Organization of the Petroleum Exporting Countries (OPEC) is projected to rise by 0.4 million barrels a day this year, the report saod.
"After falling by 0.8 mb/d last year, non-OPEC output will grow by 0.4 mb/d in 2017. Growth is mainly in the Americas, where higher prices are fuelling increased investments in US LTO [light tight oil] activity and long lead-time projects are coming on stream in Brazil and Canada," IEA’s monthly report reads.
On the global scale, oil supplies dropped by almost 1.5 million barrels a day, with both OPEC and non-OPEC countries producing less. A year ago, world oil production stood at 96.4 million barrels a day.
In December 2016, OPEC states decreased oil production by 221,000 barrels per day in December 2016 down to 33.08 million barrels amid the deal on oil output curtailment.