OPEC+, an alliance between the Organization of the Petroleum
Exporting Countries (OPEC), led by Saudi Arabia, and a handful of other
oil producers, helmed by Russia, has agreed to extend record oil production cuts until the end of July.
The deal only went through after Riyadh cracked the whip on so-called free riders such as Nigeria and Iraq for producing much more oil than they had promised, demanding them to compensate with extra cuts from July to September.
Joining Saudi Arabia in calling for better compliance was Russia, which has itself struggled to comply with its pledged targets in the past. Russia, the world's second-largest crude oil exporter, complied with OPEC+ targets only for three months last year and that too largely owing to a monthslong contamination crisis surrounding its Druzhba pipeline. According to estimates by Moscow-based Vygon Consulting, the average compliance by Russia was above 80% from January 2017, when the OPEC+ cuts kicked in, to September 2019.
Read more at:
Russia: From OPEC+ offender to enforcer | Business| Economy and finance news from a German perspective | DW | 09.06.2020
The deal only went through after Riyadh cracked the whip on so-called free riders such as Nigeria and Iraq for producing much more oil than they had promised, demanding them to compensate with extra cuts from July to September.
Joining Saudi Arabia in calling for better compliance was Russia, which has itself struggled to comply with its pledged targets in the past. Russia, the world's second-largest crude oil exporter, complied with OPEC+ targets only for three months last year and that too largely owing to a monthslong contamination crisis surrounding its Druzhba pipeline. According to estimates by Moscow-based Vygon Consulting, the average compliance by Russia was above 80% from January 2017, when the OPEC+ cuts kicked in, to September 2019.
Read more at:
Russia: From OPEC+ offender to enforcer | Business| Economy and finance news from a German perspective | DW | 09.06.2020
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