OPEC+ To Discuss Compliance With Oil Output Cut Agreement

Oil Producers under OPEC and OPEC+ countries including Russia will today meet to review the rate of compliance with agreement on oil cut.

The meeting would specifically review compliance by countries such as Iraq, Nigeria and Kazakhstan.

According to Reuters, OPEC+ is unlikely to change its output policy, which currently calls for a reduced output by 7.7 million barrels per day.

“The meeting will be mostly a focus on conformity and compensation,” said an OPEC source, rather than any major tweaks to the OPEC+ supply cut deal.

The total compliance rate in July stood between 95 per cent and 97 per cent which is high based on OPEC standards.

To ensure full compliance the Minister for State petroleum, timprye Sylva, had said Nigeria would raise its compliance with OPEC+ oil cuts to 100 per cent.

This, he stated, would compensate for its overproduction in May and June.

In July, top exporter Saudi Arabia was pumping below its oil production target while Iraq and Nigeria, pumped lesser than in previous months.

However to maintain the oil cuts compliance output, Saudi Arabia’s King Salman bin Abdulaziz spoke to President Muhammadu Buhari on Wednesday and stressed the importance of compliance by all member states.