OPEC+ Presses for Compliance with Oil Cuts, Saudi Says It’s No ‘Act of Charity’

09/16/2020

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Vladimir Soldatkin, Ahmad Ghaddar, Rania El Gamal | Reuters

OPEC and its allies, led by Russia, pressed for better compliance with oil output cuts on Thursday against the backdrop of falling crude prices as uncertain reigns over the global economic outlook. 

The group, known as OPEC+, warned that rising COVID-19 cases in some countries could curb energy demand despite initial indications of a decline in oil stocks, according to a copy of a report by the group’s technical panel seen by Reuters on Thursday.

The panel of major producers, including Saudi Arabia and Russia, is unlikely to recommend any changes to their current output reduction target of 7.7 million barrels per day (bpd), or around 8% of global demand, according to three OPEC+ sources.

They will, however, press laggards such as Iraq, Nigeria and the United Arab Emirates to cut more barrels to compensate for overproduction and possibly extend the compensation period, OPEC+ sources said.

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