OPEC+ May Temper Output Rise With Extra Oil Cuts From Cheats - Bloomberg

OPEC+ May Temper Output Rise With Extra Oil Cuts From Cheats - Bloomberg:





OPEC+ is seeking extra production cuts from members that have missed their targets again in June, potentially tempering the impact of the supply resumption planned by the wider coalition next month.

A technical committee that met online on Tuesday outlined plans for countries including Iraq, Nigeria and Kazakhstan to make an additional 842,000 barrels a day of compensatory cuts in August and September, according to delegates.

The proposal will be discussed on Wednesday by a ministerial monitoring committee led by Saudi Arabia and Russia, the delegates said, asking not to be named because the information isn’t public. They’re expected to announce that the group’s overall curbs of 9.6 million barrels a day -- about 10% of global supplies -- will be relaxed in August as global fuel demand recovers.

To prevent the supply increase destabilizing a still-fragile market, Riyadh and Moscow are keen for the cartel’s laggards to make up for earlier cheating. On paper, full delivery of the compensation cuts could shrink the scheduled 2 million-barrel-a-day supply increase by almost half.