On Wednesday, the Organization of Petroleum Exporting Countries and its non-member oil producer allies (OPEC+) met virtually to review the oil cut pact’s compliance and urged some nations to increase the compliance of their compensations in production.
Iraq, Nigeria, Angola, and Kazakhstan are pushed to compensate for their overproduction from May to July in August and September. OPEC+ did not disclose the exact numbers.
Previously, OPEC+ has eased the oil production cut agreement to 7.7 million bpd from the record cuts of 9.7 million bpd between May and July.
Looking forward, OPEC+ will underline the importance of full conformity and clear the past over-production by the end of September. Many OPEC members would avoid oil prices to go higher than USD50/barrel as it would boost US shale production although they need high oil revenues to balance their budgets.
The next OPEC+ ministerial panel is scheduled for September 17.
