UAE Opec+ compliance reaches 116% in September

Iraq's production compliance reached 112%, according to a survey by Reuters

The UAE's compliance with the Opec+ deal on production cuts reached 116% for the month of September, according to a Reuters data. Reuters

The UAE’s compliance with the Opec+ deal on production cuts reached 116 per cent in September, according to a survey by Reuters.

This is aligned with commitments made by the UAE in compliance with production cuts mandated by the Opec+ alliance for September. The UAE’s total production in September was 2.5 million barrels per day (mbpd) compared with an agreed quota of 2.590 mbpd, the data showed.

"We are planning to have 100 per cent conformity in the month of September,” the UAE's energy minister Suhail Al Mazrouei said after the alliance’s joint ministerial monitoring committee meeting on September 17.

"And even though we are still importing some of the requirements from some of our neighbouring states through the GCC electricity line, we are committed for 100 per cent."

Mr Al Mazrouei said the country expected some peak demand during September but pledged to make compensatory cuts in October and November.

The UAE voluntarily cut 100,000 barrels per day more than its quota between May and July to support the alliance’s attempts to reduce stocks.

Opec and its allies, known as Opec+, agreed to cut supply by a record 9.7 million bpd from May 1 as the coronavirus crisis hammered prices and demand. The cut was tapered down to 7.7 million bpd from August 1 following recovery in demand due to the easing of movement restrictions.

Brent, the international benchmark, was down 0.76 per cent trading at $41.98 per barrel at 2:41pm UAE time.

West Texas Intermediate, which tracks US crude grades, was down 0.92 per cent, trading at $39.85 per barrel.

Iraq, Opec's second largest producer which had previously not adhered to production targets, had a 112 per cent compliance level in September, according to the Reuters survey.

Saudi Arabia, Opec's biggest producer, was 100 per cent in compliance, while Algeria was at 102 per cent.