Opec-Plus: Compensation Cuts Keep Output Growth in Check

Output of crude oil by Opec-plus amounted to 42.03 million barrels per day in July, a tiny 60,000 b/d drop compared with June, according to a preliminary assessment by Energy Intelligence. The decline resulted from a 210,000 b/d reduction in Saudi Arabia’s output to 9.54 million b/d given that the Opec leader had opened the taps in June to avert a potential supply crisis as a result of the brief Israel-Iran conflict. Compliance among the 18 members adhering to quotas improved versus June but remained relatively weak due to Kazakhstan, which is virtually maxing output and disregarding its obligations to the producer group.