UPDATE 1-Angola resists OPEC pressure to comply fully with oil cuts- sources

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By Rania El Gamal and Dmitry Zhdannikov
DUBAI/LONDON, July 2 (Reuters) - Angola is resisting
pressure by OPEC 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 led by Russia, 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, which chairs a panel that monitors adherence
with the oil cuts, has been heading efforts to press laggards
such as Iraq, Kazakhstan, Nigeria and Angola to improve
compliance with the reductions 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."
Another OPEC source said that Nigeria and Algeria are now
reaching out to Angola to convince it to execute the agreement.
"The whole (OPEC+) group is adding pressure on Angola and
others who are not complying to adhere to what they have agreed
to," said the source.
Angola's Ministry of Mineral Resources and Petroleum and
state oil company Sonangol did not respond to Reuters requests
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.