Another objective of the meeting was to examine the impact of the reduction.
The second OPEC producer, Iraq, is also historically the least compliant member of OPEC +. However, even Iraq has significantly reduced its crude oil exports this time. Iraqi exports fell 300,000 barrels per day (b / d), or 8%, in the first two weeks of June compared with May. These figures suggest that Iraq continues to improve compliance with record production cuts, in part thanks to strong, solid armaments from Russia and Saudi Arabia, who have refused to sign another month of production cuts high level unless the laggards do their part.
But getting closer to the reductions agreed in June is two months too late – for a two-month pact.
OPEC + sources say Iraq and Kazakhstan are expected to present their plans on how they will offset the extra barrels they produced in May and until tomorrow’s JMMC meeting. present in June. The group will likely expect lagging members to make up for their overproduction, barrel for barrel, in July and August.
OPEC + compliance was 87% in May.
OPEC + reductions of 9.7 million barrels per day have so far had a modest positive effect on oil prices, not least because the amount of crude oil stored worldwide is still quite excessive. And there is growing concern, including within the petroleum industry, that some of this lost demand will not return soon.
By Julianne Geiger for Oilprice.com
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