OPEC compliance with production cuts at lowest in six months, IEA says

OPEC compliance with production cuts at lowest in six months, IEA says

OPEC compliance with production cuts at lowest in six months, IEA says

OPEC members are having trouble keeping their promises. Saudi Arabian production rose from 9.92 million barrels a day to 10.05 million barrels a day.

"We're fairly in consensus of what our position is, there is no disagreement on that".

"There is no disagreement on that". "There's support under the market where we are now". We will play our role. It seems that Russian Federation may oppose any attempts to deepen the oil production cuts as it may give the impression that OPEC and its partners in the deal are uncertain about its effectiveness in reducing global supplies. It is highly unlikely that OPEC will use the same baseline for Nigeria and Libya if (or when) their deal exemption is rescinded. We have been active in the organization for 46 years.

Overall compliance with the deal slumped to 78 percent in June, from 95 percent in May.

The Minister of State for Petroleum Resources, Dr. Ibe Kachikwu has said the growing uncertainties in the global oil market may affect the implementation of the 2017 budget.

There were concerns that compliance to production quotas would fade within individual members which would make it more hard to hold discipline and risk a gradual net increase in production levels.

"We need to watch that for a couple of months so that we can get to a predictive comfort and then we voluntarily go to OPEC and see how we can contribute".

PREMIUM TIMES recalls that the exemption, which was initially for six months, was extended for another nine months.

The increase came despite its pledge to cut output by about 1.2 million bpd between January this year and March 2018.

"Nigeria is beginning to recover from the difficulties it had as a result of the loss in oil production". But, the recovery is very gradual.

Libya's output has risen to 1.05 million barrels a day, or 45,000 barrels a day more than the country was pumping at the beginning of July, according to a person with direct knowledge of the matter who asked not to be identified for lack of authorization to speak to the media.

The IEA on Thursday also called the change in demand "a dramatic acceleration". Technically, the deal now permits Libya and Nigeria to continue with unfettered production for the rest of 2017 and into the first quarter of 2018, but there are some indications that OPEC may pressure these two countries to cut production sooner. It is, however, not certain if that would be agreed at the July 24 meeting.

A coalition of 24 OPEC and non-OPEC countries including Russian Federation have been throttling their output since January to prop up prices. Output also rose in Nigeria and Libya, but they are exempt from the deal. And it was set to increase at around the same pace again next year to 99.4 million bpd. Militancy, attacks on oil infrastructure, and port terminals blockades have quieted in both African countries, therefore further increases in production are likely.

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