Analysts See OPEC Compliance Erode In H2 2017

17 Aug 2017   OPEC

OPEC’s compliance with the output cuts will continue to slip in the second half this year, despite recent rhetoric reiterating the cartel members’ commitment to stick to the production quotas, according to JP Morgan. “More positive overtures from the Saudi Arabian and Iraqi Energy Ministers on their respective commitments to the agreed cuts helped bolster market sentiment on the outlook for prices,” JP Morgan said in a note, as quoted by the Trend news agency. At the beginning of last week, OPEC held a meeting with some of the producers and cited its members Iraq and the UAE, as well as non-OPEC signatories to the deal Kazakhstan and Malaysia, as laggards in compliance. OPEC however added that they “all expressed their full support for the existing monitoring mechanism and their willingness to fully cooperate.” The jawboning continued when Iraqi oil minister Jabar al-Luaibi visited Saudi Arabia last week to […]

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