Opec, other oil producers continue talks

DUBAI/LONDON: Opec and non-Opec officials were holding a second day of meetings in Abu Dhabi to discuss ways to boost compliance with their oil outputcutting pact, sources familiar with the talks said.

The Organisation of the Petroleum Exporting Countries, Russia and other producers are cutting production by about 1.8 million barrels per day (bpd) until March 2018 to get rid of a glut and support prices.

In Abu Dhabi, a panel comprising Russia, Kuwait and Saudi Arabia, plus officials from Opec’s Vienna headquarters, has met individually with officials from Iraq, the United Arab Emirates, Kazakhstan and Malaysia, one of the sources said.

A statement on the compliance-boosting effort is being drafted and will probably be issued after the meeting concludes later in the day, two sources said.

Major Opec producers Iraq and the UAE have shown relatively low compliance with the deal based on figures Opec uses to monitor its supply. Non-Opec Kazakhstan and Malaysia have been boosting output in the last few months, according to the International Energy Agency.

At a meeting held in Russia last month, both Opec members confirmed their commitment to the pact but offered no concrete plan on how to meet their production targets, sources said.

Meanwhile, oil prices fell yesterday on increasing exports from key Opec producers despite news of lower crude shipments from Saudi Arabia.

Saudi state oil company Aramco will cut allocations to its customers worldwide in September by at least 520,000 barrels per day, sources familiar with the matter said.

Libya’s 270,000 bpd Sharara field is returning to normal after a disruption when protesters broke into a control room, the National Oil Corp said. Libya is exempt from limits on production.

Benchmark Brent crude was down 40 cents a barrel at US$51.97 (RM222) a barrel by 1330 GMT. US light crude was 40 cents lower at US$48.99.– Reuters