OPEC+ compliance rises to 103% in August – Energy Intelligence
According to Energy Intelligence assessments, compliance among the 19 countries participating in the OPEC+ oil production cuts rose to 103% in August.
Key takeaways
“The seven-percentage point increase in compliance versus July is misleading as an indicator of global oil supply.”
“The alliance's combined output rose by 1.3 million b/d in August, but with oil prices drifting lower in recent days, some are now asking if Opec-plus may have underestimated the enduring impact of the Covid-19 pandemic on global oil demand.”
“The big question is whether Opec-plus would consider making additional curbs in output, even though they have struggled to attain full compliance with their existing agreement.”
“Some further cuts in output could be implemented without having to go through the painful negotiations needed to formally alter the terms of the April agreement.”
Market reaction
WTI was last seen trading modestly flat around $38, little affected by the above report.
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Author
Dhwani Mehta
FXStreet
Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.
