Close Menu
    Facebook X (Twitter) Instagram
    Facebook X (Twitter) Instagram
    SweetCrudeReportsSweetCrudeReports
    Subscribe
    • Home
    • Oil
    • Gas
    • Power
    • Solid Minerals
    • Labour
    • Financing
    • Freight
    • Community Development
    • E-Editions
    SweetCrudeReportsSweetCrudeReports
    Home » OPEC+ cheating crackdown continues as Angola commits to cuts

    OPEC+ cheating crackdown continues as Angola commits to cuts

    July 12, 2020
    Share
    Facebook Twitter LinkedIn WhatsApp
    *OPEC flag.

    London — OPEC+ is another step closer to addressing the cheating that has dogged the cartel since its inception.

    Three weeks after a crackdown on members of the oil coalition lagging in their delivery of promised oil output cuts, the last main straggler has given assurances that satisfy the group’s leadership.

    Angola sent a new letter to OPEC’s president committing to full compliance with its output target, as well as additional cutbacks in compensation for earlier cheating, according to a delegate who asked not to be identified.

    While the Organization of Petroleum Exporting Countries and its allies estimate that they made 87% of a record 9.7 million barrels a day output reduction when the deal was launched in May, group leaders Saudi Arabia and Russia are insisting on full compliance. The alliance is tightening supply to offset the demand hit from the coronavirus crisis.

    Together, the OPEC+ cheats have agreed to implement 1.26 million barrels a day of compensatory cuts, spread out over the next few months.

    Iraq, Nigeria and Kazakhstan — the biggest laggards — promptly provided details following the latest meeting in June. Angola, however, subsequently backtracked on its promise, seeking to defer its compensation cutbacks until October.

    In a letter sent last week by Angolan oil minister Diamantino Pedro Azevedo to newly appointed Algerian Energy Minister Abdelmajid Attar — who this year holds OPEC’s rotating presidency — only pledged the country’s “best efforts,” failing to placate OPEC’s leadership.

    The follow-up correspondence this week, combined with signs that Luanda has cut loading programs, has assuaged concerns about Angola’s commitment, another delegate said.

    The assurances from Angola, plus data showing other lagging countries implemented a larger share of their cuts in June than May, suggest the issue of compliance will be less contentious than recent OPEC+ meetings.

    Angola, Iraq and Nigeria collectively pumped 240,000 barrels a day above their targets last month, according to preliminary data used by OPEC, down from an over-production of 853,000 barrels a day in May. The errant nations could be asked to make additional reparations for the excess June output when an OPEC+ monitoring committee meets next week.

    *Grant Smith & Javier Blas – Bloomberg

    Related News

    Military busts 27 illegal refineries in Rivers, Bayelsa, others

    ‘OPEC oil output rises in May but compensation cuts limit hike’

    Chevron CEO warned staff of rising safety issues before fatal Angola platform fire

    E-book
    Resilience Exhibition

    Latest News

    NDPHC launches 7.5MVA substation in Borno to boost power supply

    June 9, 2025

    Nigeria sends mining scholars to Australia for training

    June 9, 2025

    Shipping firms dodges $900m cost, as Nigeria hit by empty container glut

    June 9, 2025

    Military busts 27 illegal refineries in Rivers, Bayelsa, others

    June 9, 2025

    ‘OPEC oil output rises in May but compensation cuts limit hike’

    June 9, 2025
    Demo
    Facebook X (Twitter) Instagram
    • Opec Daily Basket
    • Oil
    • Power
    • Gas
    • Freight
    • Financing
    • Labour
    • Technology
    • Solid Mineral
    • Conferences/Seminars
    • Community Development
    • Nigerian Content Initiative
    • Niger-Delta Question
    • Insurance
    • Other News
    • Focus
    • Feedback
    • Hanging Out With Markson

    Subscribe for Updates

    Get the latest energy news from Sweetcrudereports.

    Please wait...
    Please enter all required fields Click to hide
    Correct invalid entries Click to hide
    © 2025 Sweetcrudereports.
    • About Us
    • Advertise with us
    • Privacy Policy

    Type above and press Enter to search. Press Esc to cancel.