OPEC’s Strong Start to New Oil Cuts Marred by Usual Suspects - Bloomberg

OPEC’s Strong Start to New Oil Cuts Marred by Usual Suspects - Bloomberg:

OPEC’s delivery of its latest oil-production cutbacks, while strong overall, was undermined by its habitual laggards.

The Organization of Petroleum Exporting Countries implemented three-quarters of the cuts pledged in May to re-balance a global market upended by the coronavirus, according to a Bloomberg survey. Yet performance was marred by Iraq and Nigeria, who executed less than half of their agreed reduction. 


The cartel and its partners, who make up a 23-nation alliance known as OPEC+, promised to collectively curb output by a record 9.7 million barrels a day in May and June amid an unprecedented collapse in fuel demand. The coalition will meet this week or next to consider its next step.

OPEC+ will discuss maintaining that level of cuts for another couple of months to disperse a billion-barrel glut that’s accumulated during the pandemic, and the high compliance rate so far may encourage ministers they can keep it going. At the same time, the laggards may be in for criticism for diluting the impact of the strategy.