OPEC+ meet to discuss oil output cut agreement amid coronavirus demand slump

A 3D printed oil pump jack is seen in front of the OPEC logo. (File photo: Reuters)

OPEC oil producers and allies such as Russia, a grouping dubbed OPEC+, meets on Wednesday to review compliance with oil cuts meant to support oil prices amid the coronavirus pandemic.

OPEC+ is unlikely to change its output policy, which currently calls for reducing output by 7.7 million barrels per day (bpd) versus a record high 9.7 million bpd up until this month, according to OPEC+ sources.

They said the meeting instead would focus on compliance by countries such as Iraq, Nigeria and Kazakhstan.

For all the latest headlines follow our Google News channel online or via the app

Compliance with the cuts was seen at 95 percent to 97 percent in July, according to OPEC+ sources and a draft report seen by Reuters on Monday.

That is high by OPEC standards. In July, top exporter Saudi Arabia was still pumping below its target and Iraq and Nigeria, while lagging the Gulf OPEC members on compliance, were pumping less than in previous months, according to a Reuters survey and other assessments.

Saudi Arabia’s King Salman bin Abdulaziz spoke to Nigerian President Muhammadu Buhari on Wednesday and stressed the importance of compliance by all participants, Saudi state news agency SPA reported.

Brent crude has been trading near a 5-month high above $45 a barrel and has more than doubled since hitting a 21-year low below $16 in April, helped in part by the OPEC+ deal.

Read more:

Iraq agrees oil tanker deal with Norway’s shipbuilder Batservice Mandal: Minister

OPEC+ compliance with oil output cuts in July around 97 pct, ahead of key meet

Iran says crude oil prices have risen, are stable: Iran OPEC member

SHOW MORE
Last Update: Wednesday, 19 August 2020 KSA 12:01 - GMT 09:01
Top