Participants in the OPEC+ deal fulfilled their obligations to limit oil production by 109% in June, including non-OPEC countries, which fulfilled obligations by 99%, Argus reports.
Previously, OPEC reported that the cartel countries fulfilled their obligations by 112%.
According to the terms of the OPEC+ deal, countries must reduce total oil production in May-July by 9.7 million bpd relative to the initial level, for which the actual indicator of October 2018 is adopted for most countries.
In May, OPEC+ countries met these targets by only 87% of planned reduction in production, or 8.4 million bpd.
OPEC countries fulfilled their obligations in May by 84%, while non-OPEC countries – by 92%.
The increase in actual production restrictions by OPEC+ in June compared to May occurred against the backdrop of the fact that Saudi Arabia, Kuwait and the UAE undertook additional production cuts in June, in excess of their obligations under the OPEC+ deal.
At the same time, Saudi Arabia took a tough stance against countries that did not fulfill their obligations in May. Saudi Arabian Oil Minister, Prince Abdulaziz bin Salman, said that it was unacceptable for individual participants to evade compliance with general agreements. As a result, OPEC+ countries at a general video conference on June 6 added a clause to the protocol that participants who showed insufficient discipline in May-June should compensate for this with an additional reduction in production in July-September. According to the results of May, Iraq, Nigeria, Kazakhstan and Angola were among the countries that did not substantially fulfill their obligations.
It is assumed that from August 1, oil production restrictions in OPEC + countries should be relaxed from 9.7 million bpd to 7.7 million bpd, but this indicator does not take into account possible volumes of additional restrictions for individual countries that have not fulfilled the terms of the transaction in previous months.
Recall that Kazakhstan exceeded its obligations to reduce production under the OPEC+ deal in June.
Earlier it was reported that Azerbaijan proposed to increase the number of countries in OPEC+.
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