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Angola resists OPEC pressure to comply fully with oil cuts- sources

Published 02/07/2020, 11:57
Updated 02/07/2020, 12:00
© Reuters.

By Rania El Gamal and Dmitry Zhdannikov
DUBAI/LONDON, July 2 (Reuters) - Angola is resisting
pressure by OPEC's de-facto leader Saudi Arabia for a steeper
oil output cut to comply fully with record supply curbs, OPEC
and industry sources said.
The Organization of the Petroleum Exporting Countries and
allies, known as OPEC+, have been cutting oil output since May
by a record 9.7 million barrels per day after the coronavirus
crisis destroyed a third of global demand.
After July, the cuts are due to taper to 7.7 million bpd
until December.
Saudi Arabia has been pressing laggards such as Iraq,
Kazakhstan, Nigeria and Angola to improve compliance with the
cuts and compensate for May overproduction in July-September.

"Angola is saying they would not compensate for its
overproduction in July-September like the rest of the countries
but would be able to compensate only in October-December," said
one OPEC source. "We are still trying to convince them."
Angola's Ministry of Mineral Resources and Petroleum and
state oil company Sonangol did not respond to a Reuters request
for comment.
In May, Angola pumped 1.28 million bpd, according to OPEC
data, or 100,000 bpd more than its target.
It trimmed production to 1.24 million bpd in June, based on
a Reuters survey, 60,000 bpd above its target. OPEC/O
"Angola argues they did cut quickly despite the pain and
difficulty it put them in with regard to long-term supply
contracts," said one source familiar with Angolan oil plans.
The source said Sonangol will in August supply full volumes
to buyers such as India's refiner MRPL and Indian Oil Corp.
(IOC) as well as to Unipec, the trading arm of Chinese refiner
Sinopec, and China's state-owned Sinochem.

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