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Commodities

Saudi pressures Nigeria, Iraq and others over output targets

OPEC is expected to discuss production cut compliance from defaulting members in today’s meeting.

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The Saudi King, Salman bin Abdulaziz spoke with Nigeria’s President, Muhammadu Buhari pressuring the need for Nigeria to comply with its OPEC+ production quotas, as Nigeria joins Iraq and other non-compliant members on extended cuts.

This was disclosed by the Saudi State-run media on Wednesday morning before the OPEC+  meeting later today.

Nairametrics reported in July that the Organization of Petroleum Exporting Countries (OPEC) and its sister-members have asked the Joint Technical Committee (JTC) to monitor underperforming members in the extended production cuts.

The body also requests that all underperforming nations including Nigeria, Iraq, and others submit their plans for implementation of the “required compensation”.

Nigeria and Iraq failed to reach full compliance of the initial OPEC cuts as the cartel reduced production by 9.6 million barrels, bringing crude production to its lowest level in nearly 30 years.

OPEC is expected to discuss production cut compliance from defaulting members in today’s meeting, which would be chaired by Russia and Saudi Arabia.

Oil prices have rebounded from recorded lows in April, as Brent Crude reaches prices of near $45 per barrel today, the cartel expects full compliance from members who did not meet their quota targets to maintain the price at its current level.

Iraq announced it reached 85% of compliance in July and promised to cut production by 400,000 barrels a day in August in addition to its 850,000 barrels production cut quota.

Nigeria also promised last month that it is working hard to also meet full compliance with the cuts.

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