Saudi Oil Prince Abdulaziz bin Salman: How He Wins Against OPEC+ Crude Cheats - Bloomberg:
The Saudi royal running the kingdom’s oil policy is achieving something his predecessor never did: bringing the quota cheats of OPEC+ to heel.
Prince Abdulaziz bin Salman has done this through an unusual method. The cartel has instructed members who failed to deliver their agreed share of oil-production cuts -- like Iraq and Nigeria -- to promise extra reductions in compensation.
These punishments pose an unrealistically onerous burden for economies that have been laid low by the oil slump. Sure enough, the countries concerned aren’t complying with them, and initial compensation cuts pledged for July never happened.
But the strategy is paying off for the Saudis. In July, Iraq and Nigeria both achieved 85% of their targeted reductions, according to OPEC+ data, levels of compliance they’ve almost never displayed before.
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