Industry

Oil climbs to $76 as OPEC+ panel sees output rising

Brent oil prices rose to near $76 a barrel on Monday as a committee monitoring a deal on oil output curbs between OPEC and non-OPEC producers saw production rising while a U.S.-China trade dispute capped gains.

International Brent crude oil futures were at $76.04 per barrel at 1326 GMT, up 22 cents from their last close.

Members of an OPEC and non-OPEC monitoring committee found producers in a supply-reduction agreement cut their July output by 9% more than called for in their pact, two sources familiar with the matter said on Monday.

The Organization of the Petroleum Exporting Countries and other producers led by Russia agreed in June to return to 100% compliance with oil output cuts that began in January 2017.

Venezuela, Iran

This follows months of underproduction by Venezuela and other producers which cut output by 160% of the agreed target.

The July findings compare with a compliance level of 120% for June and 147% for May, meaning participants have been steadily increasing production.

The committee groups Saudi Arabia, Russia, the United Arab Emirates, Kuwait, Algeria, Venezuela and Oman.

The oil market is expected to tighten when U.S. sanctions targeting OPEC member Iran’s oil exports kick in in November.

Iran has exported around 2.5 million barrels per day of crude oil so far this year. Most analysts expect this figure to fall by at least 1 million bpd.

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Printable version | Jul 16, 2020 9:38:01 AM | https://www.thehindu.com/business/Industry/oil-climbs-to-76-as-opec-panel-sees-output-rising/article24794444.ece

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