Exclusive: OPEC+ needs to offset large May-July oversupply -document - Reuters:
Oil producing countries in the OPEC+ group that pumped above supply targets from May to July will need to slash output by over a million barrels per day for two months to compensate, according to OPEC sources and an internal OPEC+ report seen by Reuters.
The producer group includes members of the Organization of the Petroleum Exporting Countries and other oil powers including Russia, who together pledged to make record cuts of 9.7 million barrels per day (bpd) in May to end a huge glut in supply as coronavirus lockdowns destroyed fuel demand worldwide. As demand has started to recover, the group tapered the cuts to 7.7 million bpd in August.
Some countries such as Iraq and Nigeria failed to meet those targets and are coming under pressure from other OPEC+ members, including de-facto OPEC leader Saudi Arabia, to reduce production to ensure they compensate by the end of September for the oversupply since the cuts were agreed.
The volume they need to reduce is the equivalent to 1.15 million bpd over two months, one OPEC source said, or 2.
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