OPEC+ compliance in August seen at 101%: three sources

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LONDON – Compliance with oil production cuts in August among OPEC+ members was seen at around 101%, three OPEC+ sources told Reuters on Wednesday.

A technical committee of the alliance of the Organization of the Petroleum Exporting Countries and its allies, known as OPEC+, plans to hold a meeting later on Wednesday to discuss market fundamentals and compliance.

The compliance figure may be adjusted at the meeting of the committee, one of the sources said.

An OPEC+ ministerial monitoring committee meets on Thursday, and is unlikely to announce recommendations for expanding the oil cuts further, sources told Reuters this week.

The meeting, instead, is expected to extend the compensation period for countries like Iraq and Nigeria for their past overproduction.

The meetings come against the backdrop of worsening demand forecasts, including from OPEC.

In its monthly report, the organisation said it expected world oil demand to fall by 9.46 million barrels per day (bpd) this year, more than the 9.06 million bpd decline expected a month ago.

The OPEC forecast chimes with a worsening demand outlook outlined by the International Energy Agency and major oil industry producers and traders.

REUTERS

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