OPEC countries + on July 15 concluded that oil demand is recovering and that it is possible to follow the intended course – to increase oil production from August by 2 million barrels per day (b / d).
However, the parties to the transaction expect that countries that have not previously fulfilled obligations will compensate for this increase.
The deal to reduce oil production by the OPEC + countries, concluded in early April against the backdrop of an unprecedented drop in oil demand due to the COVID-19 pandemic,
suggested that in May-June production cuts amounted to 9.7 million bpd.
Then these volumes were also applied for the month of July. Now from August 1 to the end of 2020, volumes are reduced by 7.7 million bpd.
In May, OPEC + countries fulfilled their obligations by 89% (minus – by almost 1 million bpd), and in June the deal was completed by 95%, that is, “extra” 485 thousand bpd entered the market. In general, over two months there were about 1.5 million b / d.
According to the OPEC report, only the Cartel countries should in the future, in addition to their quotas, reduce production by another 1.3 million bpd. Among the worst offenders are Iraq, Nigeria, Angola, Gabon and Congo. Among non-OPEC countries, only Kazakhstan was publicly named.
During the ensuing press conference, Saudi prince Bin Salman said that taking into account compensations, the reduction in oil production in August will not be 7.7 million bpd, but about 8.1-8.2 million bpd.
He also added that not all countries have submitted their schedules, so the figure of 8.1 million b / d is preliminary.
