Mubasher: The Organization of the Petroleum Exporting Countries (OPEC) agreed on Thursday to reduce their output, while asking over-supplying member states Iraq and Nigeria to trim their output in line with the targeted caps, Reuters reported.
Members of the producer club along with non-affiliated partners, including Russia, an alliance known as OPEC+, have collectively over-delivered on their deal to cut supply by 1.2 million barrels per day (bpd), due to involuntary shortages from US-sanction-hit Iran and Venezuela.
However, some producers such as Iraq and Nigeria, have been supplying oil barrels above their agreed quotas.
Iraq, the group’s second biggest oil producer, has been producing 4.8 million bpd recently above its quota of 4.512 million bpd, while Nigeria produced 1.84 million bpd in August, compared with its target of 1.685 million.
Iraq vowed to reduce production by 175,000 bpd by October, while Nigeria will withhold 57,000 bpd.
These pledges came in an OPEC+ market-monitoring committee meeting in Abu Dhabi, preceding production policy discussions in Vienna next December.
Better compliance would slash more than 400,000, two OPEC+ sources told Reuters.
On a side note, Saudi Arabia’s newly-named Energy Minister Prince Abdulaziz bin Salman said that rising US shale output and exports, a sluggish global economic growth and a possible relaxation of US sanctions against Iran were addressed during the meeting.
The ministerial committee would hold a meeting again ahead of the Vienna talks.
Earlier in the week, Prince Abdulaziz said that OPEC’s defacto leader will over-deliver on its targets, just below 10 million bpd.
By 2:56 pm GMT, global benchmark Brent futures fell by 2.22% to $59.46 per barrel (pb), while US Nymex crude futures dropped by 2.40% to $54.41 pb.