Opec+ is increasingly focused on improving compliance ahead of the planned easing of voluntary production cuts from December. Oil markets have softened over the course of 2024 amid economic concerns in China, with Brent prices again testing the $70/B floor this week until Iran’s launch of ballistic missiles against Israel returned a hefty geopolitical risk premium to prices (MEES, 4 October).
The Opec+ ‘Group of Eight’ has been implementing 2.2mn b/d of voluntary production cuts since January, but the impact on market balances has been hit by limited compliance from some producers (see charts). Russia, Kazakhstan and Iraq have been highlighted by Opec as persistent overproducers, with the Opec Secondary Sources production aggregate showing combined overproduction of 96mn barrels over the first eight months of 2024. (CONTINUED - 882 WORDS)
