OPEC+ Set to Debate Oil-Cut Cheating as Russia Seeks Rule Change - Bloomberg

OPEC+ Set to Debate Oil-Cut Cheating as Russia Seeks Rule Change - Bloomberg:

OPEC+ is poised for a debate about lax implementation of oil-production cuts in Vienna this week, with Russia asking to discuss a rule change that would exclude some of its oil production from the group’s quota.

Ministers from some of the world’s largest oil producers are gathering this week, and typically their discussions wouldn’t focus on a niche hydrocarbon called condensate. Yet as Saudi Arabia signals impatience with fellow members who aren’t implementing their pledged curbs, Russia’s rebuttal may focus on the accounting method for this light oil that’s a byproduct of natural gas.

Underlying the discussions in the Austrian capital on Dec. 5 to 6 will be a disparity at the heart of the alliance between the Organization of Petroleum Exporting Countries at its allies. Since the coalition came together in late 2016, Saudi Arabia has consistently led by example by cutting deeper than required, while other nations such as Iraq, Kazakhstan and Nigeria have made only sporadic efforts to comply.