OPEC+ efforts to compensate for exceeding oil production quotas still insufficient – Bloomberg

The latest data on global oil output, analyzed by Bloomberg, indicates the lack of success of OPEC+ member countries in compensating for exceeding quotas on crude production.

When Saudi Arabia and its partners announced last month the beginning of restoration of oil supplies, they mentioned a “compensation mechanism” to avoid fluctuations in global fuel markets. This mechanism provides for additional production cuts by some members of the group that had previously exceeded the limits, so that the overall oil supply figure should not change much.

However, the data presented by the cartel on Wednesday shows that this scheme has not been effective. The total amount of required compensatory cuts rose again, climbing nearly 9% to about 139 million barrels.

Meanwhile, Brent oil prices fell to a four-year low below $60 a barrel last week as a result of the OPEC+ decision and trade tensions triggered by the US. However, according to Bloomberg, even a slump in the oil market may not be enough to make some members of OPEC+ comply with their production quotas.