The main producer and de facto leader of OPEC, Saudi Arabia, has been trying for weeks to persuade the laggards of the OPEC + agreement – namely Iraq, Nigeria, Angola and Kazakhstan – to reduce production in July, August and September more than they assume, to compensate for their total non-compliance with the agreement in May and June.
OPEC + agreed in June to extend record production reductions of 9.7 million bpd a month until the end of July, provided that all the countries of the pact respect their quotas 100% and compensate for all lack of compliance by exceeding reductions in the third quarter. .
At the video press conference following the OPEC + meeting, the Saudi Minister of Energy, Prince Abdulaziz bin Salman, emphatically said, “We have no room for lack of compliance” .
However, Iraq, Nigeria and Angola continued to exceed their targets in June, as total OPEC production fell to its lowest level in three decades, thanks to record production reductions and additional efforts Saudi Arabia and its Gulf partners to make further reductions. month.
Iraq – which was the least compliant member of the coalition – promised to make up for the lack of respect in May and June with larger cuts in July and the following months.
But Angola still promises nothing, according to Reuters sources.
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“Angola says it would not compensate for its overproduction in July-September like the rest of the countries, but could only compensate in October-December,” an OPEC source told Reuters.
“We are still trying to convince them,” added the source.
Angola plans to deliver full contract volumes in August to customers in India and China, including MRPL, Indian Oil Corp (IOC) and the Sinipec Unipec business unit, a source familiar with the plans told Reuters. export from Angola.
As recently as yesterday, the Wall Street Journal reported, citing delegates, that the Saudi Minister of Energy, Prince Abdulaziz bin Salman, had threatened to start a new oil price war unless Angola and Nigeria do not follow the rule.
By Tsvetana Paraskova for Oilprice.com
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