Saudi Arabia and Russia are in agreement that the OPEC+ deal to cut 9.7 million b/d of crude output in May and June should be extended by a month. The timing of an upcoming series of meetings appears to hinge on getting commitments about compliance, especially from countries deemed to be prior laggards.
Depending on how the global market is affected by developments relating to the Covid-19 pandemic, OPEC+ output decisions would be subject to "fine-tuning". Countries that over-produced last month will be asked to provide assurances that they will comply with their quotas going forward and that they "agree to a compensation mechanism" to address their non-compliance.
OPEC delegate would not name which countries over-produced but said Iraq and Kazakhstan are likely to be among them.
