OPEC and its allies agreed to boost crude oil production starting in July, but it seems only the latter group really got the memo. While OPEC’s output rose slightly last month, non-OPEC producers led by Russia opened the taps. More than a year-and-a-half after establishing supply cuts to balance the market, the two groups are moving further apart in their approach to that effort.
At meetings in June, the petro-states agreed to aim for 100 percent collective adherence to pledged output cuts, curbing OPEC’s over-compliance. In July, OPEC’s observance fell slightly, to 121 percent. Non-OPEC compliance tumbled to 37 percent, the second-lowest rate since the supply-cut agreement originally took effect in 2017. Combined, they’re close to that 100 percent goal, however. Bloomberg