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Production cuts are pushing oil prices towards the highest levels since March
US oil has risen to its highest price levels since the beginning of March, amid growing signs of OPEC + commitment to the production cuts, an agreement that everyone has signed, and everyone now appears ready to fully comply.
OPEC + members continue to submit detailed plans for how they apply their quotas, and to compensate for their previous breakthrough in the agreement. The total is 9.7 million barrels per day of cuts.
According to a report from Newswire, Iraq and some African countries: Nigeria, Angola and Gabon submitted their plans. Leading countries, Saudi Arabia and Russia, insist on this measure to support them for any future cuts.
Failure to commit to improved levels of commitment, improved the physical market, and restored it to a state of equilibrium that it had lost for months. The oil market turned away from the scene of the strong surplus supply that flooded the world during the closing period.
Oil futures rose by $ 41.05 a barrel, and earlier in the European session, it reached $ 41.62 a barrel. Brent oil futures rose to 0.9% at $ 43.48 a barrel.
However, given previous levels of commitment, Member States were not adhering to a strict commitment to cuts.
"Iraq violated its production share between July and August, and it was assumed that production would be cut by 3.5 million barrels per day / or 1.3 million barrels below average production during 2019," says Begorner Tonhuagen, head of oil market consultants at Resta Energy. We remain skeptical about this new line, and the extent of the state's ability to implement it within a limited time frame. "
