OPEC+ pressures Iraq, UAE to further cut oil production

Oil rises on supply deficit forecast and storm in Gulf

Prince Abdulaziz said on Thursday the compensation period could be extended until the end of 2020.

Saudi Energy minister Prince Abdulaziz bin Salman speaks after a news conference in Jeddah, Saudi Arabia September 17, 2019.

Prince Abdulaziz was speaking at a closed-door meeting of OPEC and its allies, led by Russian Federation, which pressed for better compliance with oil output cuts against the backdrop of falling crude prices as uncertainty reigns over the global economic outlook. During the OPEC+ Joint Ministerial Monitoring Committee meeting, Saudi Arabia's Prince Abdulaziz bin Salman forcefully condemned cartel members that have cheated on production quotas and Russia's Energy Minister Alexander Novak said the group should continue to strive for high compliance.

Oil prices were unchanged on Friday, weighed after a Libyan commander said a blockade on the country's oil exports would be lifted for a month, while supportive signals from an OPEC+ meeting lifted futures.

Habitual laggards Iraq and Nigeria implemented more than 100% of their required cuts last month, according to the IEA, a level unseen in previous rounds of cuts.

"It is an integral part of our collective effort to maximise the interest and gains of every individual member of this group".

"They are damaging not only for those who carry them, but for us all". "I'm going to make sure whoever gambles on this market will be ouching like hell".


Prices were also under pressure from the slow economic recovery from the pandemic.

The OPEC + Ministerial Monitoring Committee (JMMC) has recommended that countries involved in the oil limitation deal should be prepared to take further measures to stabilize the market if necessary.

"Nevertheless, signs of an increase in COVID-19 infections have appeared in some countries, leading to some worries regarding its impact on economic recovery and oil demand".

Countries that exceeded their quotas from May through August have a cumulative 2.375 million B/D of compensation cuts due, according to the committee's analysis.

The panel on Thursday could extend the period in which non-compliant members should compensate for their overproduction, other sources told Reuters earlier this week.

Under the terms of an agreement in April, OPEC and the so-called OPEC+ pledged to cut output by 9.7 million barrels per day (bpd) from May 1 until the end of June.

Brent and WTI crude held on to the two percent jump in market prices seen at the start of the meeting. We hope that we have succeeded by giving you the full details and information.

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