- Nations that vowed to cut oil production have not lived up to their word
- The oversupply of oil has caused the commodity to fall 27% from a peak of $76 in September 2018 to a current price of $56/barrel
There’s a global surplus of oil, and in recent months some of the biggest producers have been promising to cut their output. An alliance of 21 nations known as OPEC+ is trying to remove about 1.2 million barrels/day to provide greater balance to the market.
Among them are OPEC members including Nigeria, Saudi Arabia and the United Arab Emirates, as well as non-members such as Malaysia, Mexico and Russia.
However, only 10 of the nations have achieved at least 100% of their target, while the others have fallen short. Below is a percentage of cutback target reached.
Notably, UAE (94%), Saudi Arabia (130%) and Kuwait (116%) have hit their target while Iraq (-11%), Nigeria (-102%) and Russia (18%) are not even close.
The price of crude oil will continue to struggle with an overflowing supply from countries that refuse to cut production.
Article by: Francisco Cortez – Delgado
I graduated from Queen’s University with a Master’s of Political Studies. The intertwined world of politics and economics intrigue me. My favourite stories to cover are the ones that show how a few selected officials can impact nationwide macro-economic policies. I also follow the broader markets and FOREX.