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OPEC+ meets to review compliance with oil cuts

Published 19/08/2020, 09:45
© Reuters.
LCO
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* No changes expected in deal
* Oil prices near 5-month highs
* Further rally in prices would encourage U.S. shale output

By Rania El Gamal
DUBAI/LONDON, Aug 19 (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.
Compliance with the cuts was seen at 95% to 97% 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 LCOc1 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. O/R

(Writing by Dmitry Zhdannikov; editing by Jason Neely)

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