Opec+ compliance eases in September: delegate

Market: Crude oil
18/10/21

Compliance among participants of the Opec+ crude production restraint deal edged lower last month but remained well above 100pc.

Overall Opec+ compliance averaged 115pc in September, down from 119pc in August, according to a delegate. Both of these figures include Mexico, which has not formally taken part in the restraint agreement since the middle of last year. Mexico's September production was 75,000 b/d below its 1.75mn b/d baseline, the delegate said, suggesting that average compliance excluding Mexico was likely to be under 115pc.

August compliance excluding Mexico stood at 116pc, with conformity among Opec members at 119pc and non-Opec producers at 110pc.

Opec+ calculates compliance by averaging the monthly production estimates of six official secondary sources, including Argus. The figures remain preliminary until they are confirmed by the Opec+ Joint Ministerial Monitoring Committee (JMMC) at its monthly meeting, which typically takes place ahead of ministerial gatherings.

Opec+ ministers will next meet on 4 November to take a decision on December output policy. The group is facing calls to raise production more aggressively than planned amid a faster-than-expected recovery in demand and rising oil prices.

By Nader Itayim

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