Nigeria and Iraq which had exceeded their quotas in the months of May and July were asked by the global oil group to do more to meet their quota commitments.
Their action may have been informed by the inconsistent decline in the prices of oil in the international market.On Thursday the prices of oil fell even as major producers warned of a risk to demand recovery as U.S. crude inventories dropped less than expected.
The Saudi Energy Minister, Prince Abdulaziz bin Salman while speaking on Wednesday at a virtual meeting of the Organisation of Petroleum Exporting Countries (OPEC) and allies like Russia – a grouping known as OPEC+ was optimistic that global oil demands should recover to pre-pandemic levels as soon as the fourth quarter hit and urged the Kingdom’s OPEC+ partners to comply with a deal to cut output.
Brent crude was down 36 cents, or 0.8 per cent at $45.01 a barrel by 0442 GMT, having slipped 0.2 per cent in the previous session.
U.S. oil was down 38 cents, or 0.9 per cent at $42.55 a barrel, after inching higher on Wednesday.
The Energy Information Administration(EIA) disclosed on Wednesday that Stockpiles of crude in the U.S. fell a fourth straight week, even as net imports rose.
Meanwhile, the 1.6 million-barrel decline for the month of August. 14 was less than a Reuter’s poll showing expectations for a 2.7 million-barrel fall.
The EIA data showed that Fuel demand was down 14 per cent from the year-earlier period over the last four weeks, the EIA data also showed.
“The positive outcome from the OPEC+ meeting was counter-balance to the EIA reporting that U.S. oil inventories last week fell by (less than the) consensus,’’ said Avtar Sandu, Senior Manager, Commodities at Phillip Futures.
Still, a draft OPEC+ statement said a second extended wave of the pandemic would pose a major risk for the oil market recovery.
In the past decades OPEC normally produces well over 30 million barrels per day (bpd) of oil but after this year’s cut occasioned by the global pandemic, its output has declined now oscillating between 20 million and 22 million bpd.