Only six countries participating in the OPEC+ oil cut agreement have complied with their production quotas taking into account the compensation mechanism introduced to offset non-compliance shortcomings in the previous months, a report prepared for the group's ministerial committee, obtained by Sputnik read
MOSCOW (Pakistan Point News / Sputnik - 20th October, 2020) Only six countries participating in the OPEC+ oil cut agreement have complied with their production quotas taking into account the compensation mechanism introduced to offset non-compliance shortcomings in the previous months, a report prepared for the group's ministerial committee, obtained by Sputnik read.
According to the report, the underperforming countries have overproduced over 2.3 million barrels a day during the May-September period. Iraq remains the biggest debtor, as it has overproduced 578,000 barrels a day over this period, while Nigeria and Gabon have to compensate 226,000 barrels a day each. The United Arab Emirates has a debt of 132,000 barrels a day over the given period.
As for the non-OPEC participants in the deal, Russia has overproduced 430,000 barrels a day, while Sudan should compensate 246,000 barrels a day and Kazakhstan needs to slash 147,000 barrels a day, the report read.
Only Saudi Arabia, Kuwait, Algeria, Malaysia, Bahrain and Oman have not exceeded the production quotas established by the OPEC+ agreement, which is designed to stabilize the ailing energy market by removing excessive supply.
Saudi Energy Minister Prince Abdul Aziz Bin Salman has repeatedly called on underperforming countries to strictly adhere to the production cuts as non-compliance is damaging to the energy market balance. According to him, the non-compliant states have pledged to offset all shortcomings by the year's end.
On Monday, the OPEC+ Joint Ministerial Monitoring Committee convened virtually to discuss compliance with the deal, as well as the situation in the energy market amid the looming second wave of COVID-19. The overall compliance level of both OPEC and non-OPEC states in September was the highest since May and stood at 102 percent, OPEC said after the meeting.
