OPEC, Non-OPEC Aug. Compliance at 129%

An OPEC and non-OPEC monitoring committee found that oil producers’ compliance with a supply-reduction agreement reached 129% in August, two committee delegates said on Saturday. Compliance with the agreed supply cuts was 109% in July, they said, as the Organization of Petroleum Exporting Countries and its allies gather in Algiers to review adherence to the deal, Reuters reported. Seeking to reverse a downturn in oil prices that began in 2014, OPEC, Russia and other allies decided in late 2016 to reduce supply. In June this year, however, after months of cutting by more than their pact had called for, they agreed to boost output by returning to 100% compliance. That equates to an increase of about 1 million barrels per day, but the latest figures show they are short of achieving that target. A source familiar with discussions in the Algerian capital this weekend told Reuters the producers were considering the possibility of raising output by a further 500,000 bpd to counter falling supply from Iran because of US sanctions.