Crude Oil Prices Higher Following OPEC+ Meeting

EghtesadOnline: Crude oil future prices ticked higher during the mid-morning trade in Asia Friday, as the markets continued to price in a commitment from the OPEC to ensure that the members adhere to the mandated production cuts.

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19 September 2020

ICE Brent November crude futures were trading at $43.51 per barrel, up 21 cents/b (0.48%) from the Sept. 17 settle, while the NYMEX October light sweet crude contract was at $41.16/b, up 19 cents/b (0.46%), S&P Global Platts reported.

The uptick in the crude oil futures market comes after the Brent and WTI markers surged $1.04/b and $0.73/b, respectively, on Sept. 17 from the Sept. 16 settle following the OPEC+ meeting.

During the meeting, Saudi Arabia's energy minister, prince Abdulaziz bin Salman, cracked down on the OPEC+ compliance laggards and secured commitments from them to compensate for their overproduction.

According to a technical report by the Joint Ministerial Monitoring Committee, countries that exceeded their quotas from May-August have a cumulative 2.375 million barrels per day of compensation cuts due, which are required to be completed by the end of the year - an extension of the previous end-September deadline.

The UAE, which has thus far struggled to meet the production quotas, has already signaled that it will ensure compliance through ADNOC, which announced a 25% cut in November term volumes.