The Organization of Petroleum Exporting Countries, Nigeria agreed on Thursday to reduce its oil output as the group strives to prevent a glut amid soaring United States’ production and a slowing global economy.
The oil cartel had said on Wednesday in its Monthly Oil Market Report for September that all oil-producing countries must support market stability to avoid unwanted volatility and a potential relapse into market imbalance.
OPEC and 10 non-OPEC countries agreed in December 2018 to cut oil production by 1.2 million barrels per day effective from January for an initial period of six months to help balance the market and support prices. They agreed in July to extend the deal through the first quarter of 2020.
Oil prices have dropped below $60 per barrel in recent weeks from their 2019 peaks of $75 as fears of a global recession outweigh concerns about falling supply from sanctions-hit Iran and Venezuela.
A market-monitoring committee formed by OPEC and its allies, called Joint Ministerial Monitoring Committee, met on Thursday in Abu Dhabi, United Arab Emirates, ahead of their policy discussions in Vienna in December.
The committee said in a statement that conformity with the voluntary production adjustments remained high at 136 per cent in August but noted that some participating countries, such as Iraq and Nigeria, had been producing above their quota.
OPEC members pumped 29.74 million barrels per day in August, up 136,000 bpd on July, with increases mostly in Saudi Arabia, Nigeria, Iraq and the UAE.