RPT-UPDATE 1-Saudi, Russia call for compliance with OPEC+ supply curbs

The energy ministers of Saudi Arabia and Russia called on all producers to comply with oil output cuts under an OPEC-led supply deal, ahead of a meeting of a joint monitoring committee on Thursday.

Saudi Energy Minister Prince Abdulaziz bin Salman said every country should comply with the cuts to achieve market stability and cohesiveness among producers. He said the course of action decided by the Organization of the Petroleum Exporting Countries (OPEC) and its allies, a group known as OPEC+, would be shared after the committee meeting being held in the United Arab Emirates.

Russian Energy Minister Alexander Novak said a key goal of OPEC+ was to maintain full conformity with the cuts, and that the joint efforts of producers would have a lasting and positive impact on global oil markets. The producers are expected to discuss whether there is a need to deepen output cuts. Oil prices tumbled over 2% on Wednesday after a report that U.S. President Donald Trump was considering easing sanctions on Iran, which could boost global crude supply at a time of lingering worries about energy demand.

OPEC, Russia and other non-members agreed in December to reduce supply by 1.2 million BPD from Jan. 1 this year. OPEC’s share of the cut, which now runs to March 2020, is 800,000 BPD, delivered by 11 members and exempting Iran, Libya, and Venezuela. OPEC has been over-complying with cuts on average as Iran and Venezuela's exports collapsed due to sanctions, but some countries like Nigeria and Iraq have been producing above their quota.

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