Oil eases as USA production returns after storm

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The technical panel will meet later on Wednesday, while the Joint Ministerial Monitoring Committee (JMMC), co-chaired by the energy ministers of Saudi Arabia and Russian Federation, is meeting on Thursday to assess compliance rates and possible actions.

Oil prices were unchanged on Friday, weighed after a Libyan commander said a blockade on the country's oil exports would be lifted for a month, while supportive signals from an OPEC+ meeting lifted futures.

The Saudi minister also pressed oil cartel OPEC and its allies to comply fully with production cuts amid falling crude prices, insisting that doing so was "not an act of charity".

"Using tactics to over-produce and hide non-compliance have been tried many times in the past, and always end in failure", Prince Abdulaziz said at the opening session of the OPEC+ committee that monitors the output cuts.

Saudi Arabia's Prince Abdulaziz bin Salman told a gathering on Thursday that the OPEC+ producer group could hold an extraordinary meeting in October if the oil market soured because of weak demand and rising coronavirus cases, according to an OPEC+ source.

Habitual laggards Iraq and Nigeria implemented more than 100% of their required cuts last month, according to the IEA, a level unseen in previous rounds of cuts.

He opened a key OPEC+ panel, known as the joint ministerial monitoring committee (JMMC), sitting beside the UAE Energy Minister Suhail bin Mohammed al-Mazroui. "I'm going to make sure whoever gambles on this market will be ouching like hell", Prince Abdulaziz told a news conference when asked about Opec+ next steps.

Saudi Arabia urges compliance with OPEC cuts
Oil rises 2%, reverses loses as OPEC+ addresses market weakness

Although more countries around the world are gradually moving out of lockdown, crude consumption has not returned to pre-confinement levels, which were already relatively low.

"Nevertheless, signs of an increase in COVID-19 infections have appeared in some countries, leading to some worries regarding its impact on economic recovery and oil demand".

The West Texas Intermediate for October delivery rose 81 cents to settle at 40.97 USA dollars a barrel on the New York Mercantile Exchange, while Brent crude for November delivery climbed 1.08 dollars to 43.30 dollars a barrel on the London ICE Futures Exchange.

The unprecedented crisis caused by the coronavirus pandemic is expected to result in a year-on-year loss of 9.5 million barrels a day (b/d) of crude demand in 2020, according to Opec's own estimate.

The ministers agreed to extend to the end of the year the compensation period for countries who bust their production quotas.

The panel said cumulative overproduction has reached 2.38 million bpd from May until August.

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Council president Tichy-Fisslberger brushed off the appeal, and the former presidential candidate finished her statement. The German resolution calls for Bachelet to look into recent violations and report back to the council by year-end.

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