A report in Saudi Arabia revealed to Reuters that they expect Nigeria and Iraq to adhere hundred percent to the agreement made in respect to production cuts before it would decide whether to push for more oil production quota restrictions or never.
The Organization of Petroleum Exporting Countries in collaboration with a few other oil producers led by Russia, had agreed since 2017 to be pledging and renewing output limitations so as to keep oil prices from plummeting.
On the contrary, Nigeria and its Middle-East co-violators Iraq, have not been complying to the renewal agreement.
Meanwhile, Saudi Arabia have actively been producing 300,000 barrels per day only, a size less than the quota they were asked to produce, giving them reason enough to ask for assurances.
“Of course deeper cuts are an option, but some things should happen before that,” the report said.
Addressing issues whether the rest of OPEC would cut deep if Nigeria and Iraq don’t comply hundred percent, the report says, “The rest of the OPEC countries will not cut deeply if Iraq and Nigeria don’t comply hundred percent. In December we will consider whether we need more cuts for next year. But it is early now, things will be clearer in November,” the source added.
Sources: Saharareporters, SurgeZirc Nigeria, Reuters